Post-election market volatility sent the Nasdaq 100 into correction territory.
Tech and AI trades have been hit particularly hard.
But I still see several good opportunities heading into 2027.
The Invesco QQQ ETF, which tracks the Nasdaq 100 index, is down more than 13% from its October high. The Vanguard S&P 500 ETF is holding up modestly better, only down about 6% from its high. Much of this decline has happened since the U.S. midterm election, where Democrats won races across the country and will be in the majority in both the House and the Senate.
This past week will test investors' stomachs and whether they view the current stretch as an opportunity to buy the dip or a reason to run for the exits. Short-term volatility can feel painful and make your brokerage account look even worse. But if you're a long-term investor, this should be viewed as a normal bump in the road that can be taken advantage of.
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That's why I'd still look at buying four ETFs for 2027 and beyond.
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If you're still building up the core of your portfolio or want to establish a foundational position, the Vanguard Total Stock Market ETF (NYSEMKT: VTI) remains one of the best choices for U.S. equity exposure. It goes beyond just the S&P 500 to include mid-cap and small-cap stocks, two groups that have been outperforming large-caps in 2026.
In my opinion, there's never really a bad time to add the Vanguard Total Stock Market ETF or the Vanguard S&P 500 ETF to your portfolio as long-term holdings. The current election volatility, however, allows you to pick up shares at a 6% discount and bump up your returns once stocks recover.
When the market begins to look uncertain, quality matters. It's the one factor that investors tend to gravitate toward in search of safety. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) does it better than perhaps any other ETF. It looks at several balance sheet fundamental metrics to select quality dividend-paying stocks, helping to ensure the fund is a portfolio built to withstand a potential downturn.
The Schwab U.S. Dividend Equity ETF has staged an impressive rebound in 2026 following three years of disappointing returns. It's clearly been helped by its overweight in energy stocks, but the overall diversity of sector holdings -- big overweights in consumer staples and healthcare -- helps ease tech reliance in your portfolio and add some defensive posturing should the markets continue to correct.
If you're not looking for quality within the dividend stock universe specifically, you could choose the Invesco S&P 500 Quality ETF (NYSEMKT: SPHQ) instead. It similarly examines several numbers, including return on equity (ROE), accruals, and financial leverage, to help identify quality stocks with durability and sustainability.
While quality is never a bad idea to overweight in uncertain markets, you need to be a little careful with the Invesco S&P 500 Quality ETF. It still has over 30% invested in tech and has Microsoft, Apple, and Nvidia as its top holdings. But if 2027 earnings forecasts deliver as expected, tech stocks should be able to rebound from this correction. Earnings tend to be the big driver of stock returns, and I still view this as a longer-term tailwind for now.
The Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP), of course, is a way to invest in U.S. large-caps without the tech-heavy concentration. The S&P 500's biggest risk right now is that 40% of the index is invested in tech stocks, with a large percentage coming from just 5-10 names. This fund helps solve that problem by indirectly underweighting tech and reallocating to other areas of the market.
Like the Schwab U.S. Dividend Equity ETF, the Invesco S&P 500 Equal Weight ETF is a good way to retain your focus on large-caps while diversifying your holdings. Non-tech earnings growth is finally starting to look stronger as second-level artificial intelligence (AI) build-out beneficiaries. This could end up being a smart way to play the next stage of the AI trade.
David Dierking has positions in Apple, Schwab U.S. Dividend Equity ETF, and Vanguard Morningstar Total Stock Market ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.