Smart Investing During a Crash: Top Index Funds to Buy Now

But time and history have consistently shown that market crashes often present the best opportunities for long-term investors. These downturns, while intimidating in the short run, are often the moments where true wealth-building begins—if you know where to look and how to act.

During these turbulent times, stock prices don’t just dip—they overreact. Panic selling takes over, and prices of even the most fundamentally strong companies drop far below their intrinsic value. This creates a rare chance to scoop up high-quality investments at a discount. For those willing to stay calm and look past the noise, this is the moment to act—not by trying to pick the next breakout stock, but by investing in broad-based stock index funds.

So, why are stock index funds a smart move during a crash? First, they don’t try to beat the market—they are the market. These funds track major indices like the S&P 500, Nasdaq-100, or the Total Stock Market Index, providing instant diversification. Instead of betting on individual winners, you’re investing across hundreds or even thousands of companies at once.

 This reduces your risk and increases the chance of riding the eventual recovery wave. And make no mistake—markets have always recovered from crashes. Sometimes slowly, sometimes with stunning speed—but recover they do.

Let’s dive into a few standout index funds that have proven to be resilient choices, especially when bought during market downturns:

1. Vanguard S&P 500 ETF (VOO)

This fund gives you a slice of the 500 largest publicly traded companies in the U.S., including giants like Apple, Amazon, Microsoft, and Google. It’s a favorite for long-term investors who want solid, steady growth and broad exposure to the U.S. economy. With an ultra-low expense ratio of just 0.03%, you’re keeping more of your returns over time. These large-cap companies tend to rebound quickly after downturns, making VOO a strong pillar in any recovery-focused portfolio.

2. Schwab U.S. Broad Market ETF (SCHB)

If you're looking for even wider exposure, SCHB offers it. It tracks over 2,500 U.S. companies, from tech titans to small-cap innovators. This means your investment reflects the entire U.S. market—not just the big names. It also carries a low 0.03% expense ratio, giving you value without sacrificing breadth. During a crash, owning this fund is like owning a piece of America’s economic engine in all its diversity, giving you a front-row seat to its rebound.

3. iShares Core MSCI Total International Stock ETF (IXUS)

Don’t forget about the rest of the world. IXUS provides exposure to thousands of international stocks across both developed and emerging markets. Think Europe, Asia, Latin America—and beyond. With an expense ratio of 0.07%, it’s a cost-effective way to diversify globally. International markets often behave differently than U.S. markets, and having a mix can protect your portfolio when the U.S. economy stumbles or takes longer to recover.

4. Fidelity ZERO Large Cap Index Fund (FNILX)

This fund is unique for one simple reason: zero fees. FNILX gives you exposure to large-cap U.S. companies at a 0.00% expense ratio. That’s right—no cost to invest. Over time, avoiding even small fees can make a big difference in your returns. For those who want exposure to strong, established U.S. companies while maximizing every dollar, this fund is a perfect fit. Especially during a crash, when value is everything, getting in with no cost is a huge plus.

It’s completely natural to feel uneasy during a market crash. But successful investors understand that volatility brings opportunity. The key is not to run from the storm, but to prepare your sails and head into it strategically. Index funds offer a simple, effective way to capitalize on the downturn without having to guess which stock will recover or crash next. They're diversified, low-cost, and historically reliable over the long term.