As the volatility index (VIX) rises above 25, investor uncertainty is heightened, prompting a search for relatively safe investment options. Historically, spikes in the VIX signal potential economic downturns and recessions. In light of this volatility, investors are looking for exchange traded funds (ETFs) that offer some level of safety amid market fluctuations. The article highlights three Schwab ETFs that could serve as solid options for investors seeking to protect their capital during these uncertain times, particularly favoring more stable dividend-paying stocks.
With the VIX surging to recent highs, many investors are looking for relatively safe places to park their capital, until the volatility dies down.
During previous crises, investors will note sharp spikes in the VIX. Accordingly, such spikes are often viewed as potential warning signs of recessionary forces yielding their head.
The volatility index roughly measures how sporadically stocks move over given periods of time. Thus, in periods of turmoil, this index tends to spike.
Schwab U.S. Dividend Equity ETF (SCHD) is highlighted as a relatively safer bet amid market turbulence due to its focus on dividend-paying stocks.
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