Opinion: The Best Vanguard Index Fund to Buy as President Trump's Tariffs Hit the Stock Market
President Donald Trump has imposed a 20% tariff on imports from China and a 25% tariff on imports from Canada and Mexico. He has also mentioned applying a 25% tariff on imports from Europe. All countries impacted by the taxes have either taken or plan to take retaliatory action, and Trump has already threatened reciprocal retaliation.The nonpartisan Tax Foundation estimates that the tariffs proposed by President Trump will raise the average tax on U.S. imports to 13.8%, the highest level since 1939. Investors are worried about the consequences of a trade war. From their highs, the S&P 500 (SNPINDEX: ^GSPC) has fallen 6% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) has declined 9%.The utilities sector could benefit (or at least incur less damage), compared to other stock market sectors, as the trade war weighs on the broader stock market. That makes the Vanguard Utilities ETF (NYSEMKT: VPU) a compelling investment idea right now.Continue reading
President Donald Trump has imposed a 20% tariff on imports from China and a 25% tariff on imports from Canada and Mexico. He has also mentioned applying a 25% tariff on imports from Europe. All countries impacted by the taxes have either taken or plan to take retaliatory action, and Trump has already threatened reciprocal retaliation.
The nonpartisan Tax Foundation estimates that the tariffs proposed by President Trump will raise the average tax on U.S. imports to 13.8%, the highest level since 1939. Investors are worried about the consequences of a trade war. From their highs, the S&P 500 (SNPINDEX: ^GSPC) has fallen 6% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) has declined 9%.
The utilities sector could benefit (or at least incur less damage), compared to other stock market sectors, as the trade war weighs on the broader stock market. That makes the Vanguard Utilities ETF (NYSEMKT: VPU) a compelling investment idea right now.
