Why ETFs are a wise choice in a bear market

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A bear market is a prolonged period of stock market price declines, typically by 20% or more from its most recent high.

"If you have a long time horizon then a bear market can make a great entry point to buy a low-cost, well-diversified, index-based equity ETF," explained Todd Rosenbluth, head of research at VettaFi. "You will be buying at discount and have time to beIn addition, said Rosenbluth, ETFs can be appealing during a bear market as they cost less than mutual funds.

"As bear markets don’t tend to last very long, it’s important to think of your long-term saving strategy and create a diversified portfolio by buying index funds or other diversified investments," Tran said.

 

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