What Happens to Your Vanguard ETF Portfolio During a Recession? I Ran the Historical Numbers.
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The article analyzes the performance of various Vanguard ETFs during past recessions, including the 2008 financial crisis and the 2020 COVID-19 pandemic. It aims to provide insights into how different asset classes might perform in a potential future recession.
A recession may be looming due to factors like geopolitics and slowing growth. The 2008 and 2020 recessions offer clues on which areas of the market might do better or worse. The S&P 500 had a 55% drawdown in 2008, with the financial sector being the most damaged. In 2020, the S&P 500 declined by 34%. The article evaluates the performance of five popular ETFs during these recessions. The ETFs include the Vanguard Dividend Appreciation ETF, Vanguard High Dividend Yield ETF, Vanguard Growth ETF, and Vanguard Value ETF. The analysis aims to provide insights into how different asset classes might perform in a potential future recession.
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