3 ETFs Built for the Volatile Market We're Seeing in March 2026
March has been volatile thus far, with S&P 500 down about 3% for the month as of March 18. It is the continuation of negative market sentiment that began forming in late 2025. The March decline has been fueled by uncertainty around the war in Iran and rising oil prices. Also, still elevated inflation and a weak job market have contributed to investor jitters.
Investors who want to balance out their portfolios and navigate choppy markets might want to consider an exchange-traded fund (ETF) that is built to thrive in down markets.
Image source: Getty Images.
Here are three ETFs built to handle volatile markets.
1. Franklin International Low Volatility High Dividend ETF
The Franklin International Low Volatility High Dividend Index ETF (LVHI 1.87%) has outperformed the broader market by a wide margin this year. The ETF is up 8.3% year to date as of March 18, offsetting negative returns for the Nasdaq Composite and S&P 500.
Its outperformance in this market stems from its diversification away from large-cap U.S. equities. The ETF focuses on international stocks that have high dividends, low volatility, and sustainable earnings.
Legg Mason ETF Investment Trust – Franklin International Low Volatility High Dividend Index ETF
Today’s Change
(-1.87%) $-0.74
Current Price
$38.90
Key Data Points
Day’s Range
$38.72 – $39.63
52wk Range
$28.46 – $41.70
Volume
1.1M
It holds about 185 mostly large-cap and mid-cap international stocks from some 19 different developed nations. Stocks from Canada, Japan, and the U.K. have the most representation. Shell, Novartis, and Suncor Energy are among its largest holdings. The ETF is weighted by its proprietary stable yield score.
The ETF is up 30% over the past 12 months with the dividend reinvested and has averaged a 16.7% return over the past five years.
2. Franklin U.S. Low Volatility High Dividend ETF
The Franklin U.S. Low Volatility High Dividend ETF (LVHD 1.52%) is an attractive option right now for the same reason as its sister ETF, LVHI. The only major difference is that it focuses on low-volatility, high-dividend stocks from the U.S. Low volatility means those with low price and earnings volatility, which makes them more stable in various market conditions.
Further, high dividends mean the company is consistently churning out steady earnings to support its dividend, no matter the environment.
Legg Mason Low Volatility High Dividend ETF
Today’s Change
(-1.52%) $-0.65
Current Price
$41.89
Key Data Points
Day’s Range
$41.76 – $42.50
52wk Range
$36.66 – $44.76
Volume
30K
This ETF contains about 115 large- and mid-cap stocks with utilities and consumer staples, the two largest sectors. The top three holdings are Verizon Communications, Chevron, and American Electric Power.
This ETF is trading up about 7.2% year-to-date. It has a one-year total return of 11% and a five-year annualized total return of 8.4%.
3. Vanguard Consumer Staples ETF
The Vanguard Consumer Staples ETF (VDC 0.96%) invests in companies that produce products that consumers need in any type of market or economy.
These are called consumer staples, and they include stocks like Walmart, Costco Wholesale, and Procter & Gamble. These are companies that own low-cost or bulk shopping centers, or basic food items that people eat every day. Overall, it tracks an index of roughly 104 consumer staples stocks from across the market cap spectrum.
Vanguard World Fund – Vanguard Consumer Staples ETF
Today’s Change
(-0.96%) $-2.14
Current Price
$221.54
Key Data Points
Day’s Range
$221.06 – $224.41
52wk Range
$202.96 – $244.33
Volume
177K
The ETF has returned about 7% year-to-date and roughly 9.1% over the past year with the dividend reinvested. Over the past five years, it has generated an annualized return of 8.4%.
These may not be blowout numbers, but in a down market, the positive returns should provide some nice balance in your portfolio.