The Market Just Got Shaken—These 3 ETFs May Come Out Stronger

Key Points

• Renewed Middle East conflict and a fragile AI trade have sent Dow futures down nearly 700 points and pushed oil prices higher.
• VIG, VIGI, and FDVV are three dividend-growth ETFs highlighted for combining reliable income with exposure to growth sectors like technology and healthcare.
• All three funds carry Moderate Buy ratings, low expense ratios, and holdings in companies with long histories of raising dividends through market downturns.

Markets are being tested again. The AI trade has spent the past several weeks under real pressure, with memory, semiconductor, and neocloud names selling off hard after an extraordinary first half. And now a fresh shock has arrived. Reports indicate the ceasefire in the Middle East is unraveling, with strikes on Iran appearing to resume. The market gapped down significantly at the Wednesday open, with the Dow dropping by about 600 points and oil prices surging.

Moments like these are exactly why long-term investors build positions in vehicles designed to weather volatility, not just chase it. Funds that combine reliable income with genuine growth potential offer portfolios two ways to win: dividends that compound through the chaos, and quality holdings that recover and grow on the other side. Here are three ETFs that fit that description well.

Vanguard Dividend Appreciation ETF: The Flagship Compounder

The Vanguard Dividend Appreciation ETF NYSEARCA: VIG is one of the most popular dividend funds in the world for good reason. With $111.35 billion in assets and a rock-bottom 0.05% expense ratio, VIG tracks the S&P U.S. Dividend Growers Index, a basket of 340 companies with a decade-plus record of raising their dividends every single year. That screen naturally filters for durable, cash-generative businesses, the kind that tend to hold up best when markets wobble.

What makes VIG more than a defensive vehicle is what sits inside it.

Top holdings include Broadcom NASDAQ: AVGO, Apple NASDAQ: AAPL, Microsoft NASDAQ: MSFT, and Eli Lilly NYSE: LLY, giving the fund meaningful exposure to technology and healthcare growth alongside classic dividend payers like Johnson & Johnson NYSE: JNJ and ExxonMobil NYSE: XOM.

The yield is a modest 1.5%, but the emphasis is on dividend growth rather than starting yield, which is what drives long-term compounding.

Vanguard International Dividend Appreciation ETF: The Global Diversifier

The Vanguard International Dividend Appreciation ETF NASDAQ: VIGI applies the same philosophy outside the United States, and in a macro environment like today's, geographic diversification matters. VIGI tracks the S&P Global ex-U.S. Dividend Growers Index, which holds 346 developed and emerging-market companies that have raised their dividends for at least seven consecutive years. Top holdings include Nestlé OTCMKTS: NSRGY, Novartis NYSE: NVS, Roche OTCMKTS: RHHBY, SAP SE NYSE: SAP, Schneider Electric OTCMKTS: SBGSY, and Royal Bank of Canada NYSE: RY, a collection of global blue chips with fortress balance sheets.

The case for VIGI is straightforward. It offers a higher yield than its U.S. counterpart, a low 0.1% expense ratio, and global diversification.

When U.S. markets gap down on geopolitical headlines, international dividend growers denominated across multiple currencies and economies provide a genuine hedge rather than a duplicate bet.

The fund is up over 4% year-to-date, and with international valuations still trading at a meaningful discount to U.S. equities, the long-term setup offers both income and possible room for multiple expansion.

Fidelity High Dividend ETF: Income With a Growth Engine

The Fidelity High Dividend ETF NYSEARCA: FDVV might be the most surprising name on this list, and arguably the most interesting. It offers the highest yield of the three at 2.8%, yet its single largest holding is NVIDIA NASDAQ: NVDA at 6.48%, followed by Apple, Microsoft, and Broadcom. FDVV tracks the Fidelity High Dividend Index, which screens large and mid-cap companies for positive dividend characteristics while allowing meaningful exposure to dividend-paying technology leaders.

The result is a fund that behaves unlike traditional high-yield products. Investors collect a near 2.8% yield while retaining genuine participation in the AI and technology growth story, precisely the combination that pure income funds sacrifice. With $9.93 billion in assets, a 0.16% expense ratio, 111 holdings, and an almost 9% year-to-date gain that leads this entire group, FDVV has quietly proven that income and growth are not mutually exclusive. For investors who want to stay exposed to the market's most powerful theme while getting paid through the drawdowns, this is a compelling middle path.

Income Plus Growth ETFs Could Help Weather the Storm

With markets sliding on renewed conflict and the AI trade on shaky footing, investors are reminded of why the income-plus-growth combination endures. All three of these funds carry Moderate Buy aggregate ratings, low fees, and portfolios built on companies that have proven they can raise payouts through wars, recessions, and sell-offs alike. For long-term investors, that is the kind of foundation worth owning when the headlines turn ugly.