Key Points
The Vanguard High Dividend Yield ETF tends to hold up well during turbulent times.
The iShares MSCI USA Minimum Volatility Factor ETF is specifically designed for stability.
Both could be solid additions to a long-term stock portfolio in 2026.
To say that the stock market has been turbulent lately would be a major understatement. The S&P 500 has already experienced significant swings in 2026 due to the Iran conflict, tariff uncertainty, fears of AI disruption, and other factors. In fact, the CBOE Volatility Index (often referred to as the "VIX") has risen by more than 50% since the beginning of the year.
If you're an investor looking to add an element of stability to your portfolio in an uncertain market, there are some excellent exchange-traded funds, or ETFs, that can help you do it. Here are two top choices that could be worth a look in the uncertain stock market environment.
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High-yield stocks tend to hold up
Obviously, dividend-paying stocks are not immune to market turbulence. However, high-yield dividend stocks tend to be less volatile during tough times, as they are more mature businesses with stable revenue streams than their non-dividend counterparts.
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One ETF worth a closer look is the Vanguard High Dividend Yield ETF(NYSEMKT: VYM). The fund tracks an index of stocks with above-average dividend yields and has a rock-bottom 0.04% expense ratio, making it great for investors who want to keep fees at a minimum.
As of the latest data, the Vanguard High Dividend Yield ETF owns 562 different stocks, most of which are large, established companies. For example, Broadcom(NASDAQ: AVGO), JPMorgan Chase(NYSE: JPM), and ExxonMobil(NYSE: XOM) are the fund's three largest holdings. It has a dividend yield of about 1.7% as of this writing, making it especially attractive to income investors seeking stability.
Minimal volatility as a strategy
The iShares MSCI U.S. Minimum Volatility Factor ETF(NYSEMKT: USMV) doesn't focus on dividend stocks. Rather, it is specifically designed to construct a portfolio of stocks that provides minimal overall portfolio volatility.
The ETF has 170 different stocks, and just to name a few, you'll find ExxonMobil, Duke Energy(NYSE: DUK), and Johnson & Johnson(NYSE: JNJ) among its top holdings. It has an expense ratio of just 0.15% -- higher than the Vanguard fund discussed above, but on the very low end for a more specialized ETF like this.
With a 3-year beta of 0.59, the U.S. Minimum Volatility Factor ETF is significantly less volatile than the S&P 500 (Note: The S&P 500 has a beta of 1.00). So, this could be a great choice for investors who want stock exposure with minimal downside risk in tough times.
Should you buy stock in Vanguard High Dividend Yield ETF right now?
Before you buy stock in Vanguard High Dividend Yield ETF, consider this:
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JPMorgan Chase is an advertising partner of Motley Fool Money. Matt Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase and Vanguard High Dividend Yield ETF. The Motley Fool recommends Broadcom, Duke Energy, and Johnson & Johnson. The Motley Fool has a disclosure policy.
