Three Vanguard ETFs to Buy Amid S&P 500 Correction

Vanguard offers a wide array of 91 exchange-traded funds (ETFs), ensuring that investors have options regardless of current economic conditions. Although many individuals may hesitate to invest due to the recent downturn in the S&P 500 (SNPINDEX: ^GSPC), there are still viable choices. Here are three Vanguard ETFs that stand out during this correction period.

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1. Vanguard Long-Term Treasury ETF

In contrast to the significant declines seen in the S&P 500 and other major stock indexes, several Vanguard bond ETFs have shown positive returns this year. The Vanguard Long-Term Treasury ETF (NASDAQ: VGLT) is among the top choices for investors currently.

This ETF holds 90 U.S. Treasury bonds with an average effective maturity of 22.3 years. Long-term U.S. Treasury bonds are generally considered safe investments during uncertain times, as they are backed by the U.S. government’s guarantees. One significant benefit of this ETF is its ability to provide a return while waiting for a market recovery, with a 30-day SEC yield of 4.59%.

Investors could purchase long-term U.S. Treasuries directly; however, this Vanguard fund simplifies the process by offering broad exposure to multiple Treasuries, combined with a low annual expense ratio of just 0.03%.

2. Vanguard Utilities ETF

The Vanguard Utilities ETF (NYSEMKT: VPU) has increased by 19% in 2024 and has kept its gains more effectively than many stock funds, even though it has seen some recent declines. This ETF remains relatively resilient compared to its peers.

This ETF includes 69 utility stocks, with major holdings such as NextEra Energy, Southern Company, Duke Energy, Constellation Energy, and American Electric Power.

Can this ETF continue to outperform others? Yes, utility companies tend to be shielded from the adverse impacts of tariffs compared to other sectors. Their costs might rise—higher steel prices could inflate construction expenses for new facilities—but utilities often pass these costs on to consumers through regulatory adjustments.

While growth may not always be exceptional, the top holdings within the Vanguard Utilities ETF may experience solid growth from the increasing demand for data centers driven by artificial intelligence (AI). Thus, this ETF could thrive irrespective of broader economic fluctuations in the coming years.

3. Vanguard S&P 500 ETF

You may find it surprising to see the Vanguard S&P 500 ETF (NYSEMKT: VOO) featured among the best ETFs to buy during the S&P 500 correction. True to its name, this ETF tracks the performance of the S&P 500 index, which has also seen significant losses in 2025.

However, for long-term investors, this could represent an opportune time to invest in the Vanguard S&P 500 ETF. Essentially, acquiring shares in this fund signifies confidence in the ingenuity and resilience of U.S. businesses—as it has traditionally been a profitable investment strategy.

It’s worth noting that the Vanguard S&P 500 ETF holds 506 stocks instead of just 500 due to multiple share classes traded for several large U.S. firms, such as Alphabet‘s Class A and Class C shares.

The fund’s principal holdings include Apple, Nvidia, Microsoft, Amazon, and Meta Platforms. Although these stocks have declined recently, they have the potential for significant recovery in the future.

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*Stock Advisor returns as of April 5, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Constellation Energy, Meta Platforms, Microsoft, NextEra Energy, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends Duke Energy and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.