The 5 Best ETF’s to Protect Your Portfolio from a Market Crash

Limiting downside risk and make more money by buying low

“Be fearful when others are greedy and be greedy when others are fearful” — Warren Buffett

With a greedy market and a massive bull run occurring, cautious investors may be inclined to reduce portfolio volatility and drawdown risk.

Before I start the list, it is important to understand the differences between drawdown and volatility.

“A drawdown refers to how much an investment or trading account is down from the peak before it recovers back to the peak” → Investopedia

This is completely different than portfolio volatility:

“Volatility represents how large an asset’s prices swing around the mean price — it is a statistical measure of its dispersion of returns.” → Investopedia

In summary, drawdown is the theoretical losses that a portfolio would incur after a certain drop, while volatility measures the amount of price fluctuation.

In this article I will be showing you 5 of the best ETF’s on the stock market that can help limit portfolio drawdown. Some of these may also lower volatility, but I will go through…