Worried About a Market Crash? This Vanguard Fund Can Help Reduce Your Risk

By David Jagielski, CPA – Mar 30, 2026 at 6:00PM ESTKey PointsThe exchange-traded fund invests in utility stocks, which can be among the safest investments to hold.Normally, the fund isn't all that popular, but investors have been loading up on it amid uncertainty this year.The S&P 500 is down more than 7% to start 2026, as investors worry about a prolonged downturn in the market this year due to geopolitical issues and the possibility that inflation spikes due to rising oil prices. Rather than loading up on the same growth stocks that have dominated headlines in recent years, investors find themselves pivoting to safer investments. If you're looking for a way to reduce some of your risk in the stock market today, a good exchange-traded fund (ETF) to consider is the Vanguard Utilities ETF (VPU +0.63%). While it won't completely eliminate risk, here's why it can be a good option if you want a quality investment that you don't have to worry about. Image source: Getty Images. Why the Vanguard Utilities ETF can be a safe haven for investors When the markets are in turmoil as they are now, investors often look for a safe place to hide out amid uncertainty.

The Vanguard Utilities Fund can be among the more popular options to consider, given both the stocks it invests in and the dividend it offers. At 2.5%, it pays more than double the S&P 500's average yield (1.2%). The fund also has a position in 67 stocks, all of which are in the utilities sector. These types of stocks give you a position in businesses that generally have a great deal of stability and predictability in their future earnings. There's much less volatility with these types of investments than there is with other stocks. An example of that is the ETF's low beta value of 0.73, which is below 1.0, indicating that the fund doesn't follow the overall market too closely. This year, it has risen by 7%, while the S&P 500 has declined by a similar percentage. ExpandNYSEMKT: VPUVanguard Utilities ETFToday's Change(0.63%) $1.23Current Price$198.11Key Data PointsDay's Range$197.50 - $199.8652wk Range$154.00 - $206.10Volume291K The ETF can be an excellent long-term holding Regardless of whether you're worried about a market crash or not, the Vanguard Utilities ETF can still make for a quality long-term investment to hang on to. Given its diversification into many types of utility stocks and the yield it offers, it can offer plenty of long-term stability. And the dividend income it generates can help your portfolio grow steadily in value over time, even if the ETF doesn't experience a significant surge in value. The fund's expense ratio of 0.09% is also modest, which can make it a particularly suitable investment to buy and hold, since fees will remain fairly minimal in relation to your overall investment in the ETF, even over the very long haul. Overall, this Vanguard fund is a solid investment that you can buy and forget about.Read NextMar 10, 2026 •By David Jagielski, CPAThe Surprising Vanguard ETF That Is Soaring Past Tech Funds This YearMar 9, 2026 •By Matt Frankel, CFPTop 9 Safest ETFs to Buy in 2026Mar 9, 2026 •By Ben GranHow to Protect Your Portfolio From Jamie Dimon's "Skunk in a Party"Mar 3, 2026 •By Daniel Foelber7 of Vanguard's 11 Sector ETFs Are Crushing the S&P 500 in 2026. Here's My Favorite to Buy in March.Mar 30, 2026 •By David Jagielski, CPACan Gold Get Back Up to $5,000 This Year?Mar 30, 2026 •By Brett SchaferIs This the 1973 Oil Shock All Over Again? Here's How to Protect Your Portfolio.About the AuthorDavid Jagielski, CPA, has been a contributing Motley Fool stock market analyst covering healthcare, consumer staples, consumer discretionary, and technology stocks since 2017. David has more than 10 years of experience in finance roles across businesses of different sizes and sectors. He holds a Certified Public Accountant designation in Canada.TMFdjagielskiStocks MentionedVanguard Utilities ETFNYSEMKT: VPU$198.11(+0.63%)+$1.23*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.