5 Best ETF to Invest During this MARKET CRASH (2025)

Summary

This video discusses the top 15 ETFs that have experienced significant corrections in the stock market, with drops ranging from 10-14% in the past month. It highlights the best-performing ETFs for potential long-term investment, considering factors like sector focus, trading volume, and 5-year CAGR. The top 5 ETFs recommended for medium-to-long-term investments include Alpha ETF, Small Cap ETF, and Momentum 50 ETF, all of which demonstrate strong historical performance. The video emphasizes the importance of diversification and careful investment strategies during market corrections to minimize risk and maximize potential gains.

Takeaways

• 😀 15 ETFs have experienced corrections of 10% or more over the past month due to the ongoing stock market correction.
• 😀 Among these 15 ETFs, some focus on specific sectors or themes, making them riskier for long-term investment, especially during market corrections.
• 😀 The ETFs discussed include various sectors such as realty, small-cap, commodity, consumer, defense, and more, with varying degrees of market corrections.
• 😀 Some ETFs, such as those based on the Nifty Next 50 index, have shown significant drops (around 10% to 12%) during the correction period.
• 😀 Sector-specific or thematic ETFs often perform well in specific market conditions but can experience larger corrections during market downturns.
• 😀 The top 5 ETFs for study during a market correction are selected based on criteria like medium to long-term investment potential, liquidity, and consistent past performance.
• 😀 The Alpha ETF, based on the Nifty Alpha 50 Index, is the best performer in terms of 5-year CAGR, at 34%, making it a solid option for long-term growth.
• 😀 Small Cap ETFs, particularly those based on the Small Cap 250 Momentum Quality 100 Index, offer high growth potential, with a 5-year CAGR of 31%.
• 😀 Momentum-based ETFs, like the Momentum 50 ETF and AO 30 ETF, perform well during trending markets, but may face higher corrections during downturns.
• 😀 It’s recommended not to invest all at once during a market correction. Divide investments into parts to mitigate risk and take advantage of market rebounds.
• 😀 Liquidity is crucial when selecting ETFs for investment during a correction. Trading volumes above 2 lakh ensure smoother buy/sell transactions and less price slippage.

Q & A

What is the purpose of the video script?

The purpose of the video script is to analyze the performance of 15 ETFs that have experienced significant corrections during a market downturn. The video identifies the five best ETFs to consider for medium-to-long-term investment based on their performance, trading volume, and other key criteria.

Why is the market correction being discussed in this video?

The market correction is being discussed because many ETFs have experienced declines of 10% or more over the past month. The video reviews these ETFs to identify which ones may offer potential for recovery and growth in the medium to long term.

What factors are being considered when selecting the top 5 ETFs?

The factors considered for selecting the top 5 ETFs include medium-to-long-term investment potential (5 years or more), diversified investment approach (avoiding sectoral or thematic funds), trading volume (preferably over 2 lakh), and a 5-year Compound Annual Growth Rate (CAGR) of 20% or more.

What does CAGR stand for and why is it important in ETF selection?

CAGR stands for Compound Annual Growth Rate. It is an important metric in ETF selection because it reflects the average annual growth rate of an ETF over a specified period (in this case, 5 years), helping investors understand its potential for sustained growth.

What is the significance of trading volume in selecting an ETF?

Trading volume is significant because it indicates the liquidity of the ETF. A higher trading volume ensures that the ETF can be easily bought or sold without significant price impact, making it more liquid and less risky for investors.

Why are sectoral or thematic ETFs considered riskier?

Sectoral or thematic ETFs are considered riskier because they track specific industries or sectors that may perform well only during certain market conditions. These funds tend to have more volatile performance and can experience larger losses during market corrections.

What are some of the ETFs discussed in the video with significant corrections?

Some of the ETFs discussed in the video with significant corrections include AO Reality ETF, Small Cap ETF, Commodity ETF, Nifty Next 50 ETF, and Alpha ETFs. These ETFs have experienced corrections of 10% or more in the last month.

What are the five best ETFs recommended for study in this market correction?

The five best ETFs recommended for study are: 1) Alpha ETF (Nifty Alpha 50) with a 5-year CAGR of 34%, 2) Small Cap ETF (Small Cap 250 Momentum Quality 100) with a 5-year CAGR of 31%, 3) Momentum 50 ETF (Nifty 500 Momentum 50) with a 5-year CAGR of 30%, 4) AO 30 ETF (Momentum-Based) with a 5-year CAGR of 25%, and 5) Nifty Next 50 ETF with a 5-year CAGR of 20%.

What is the advice regarding investing in ETFs during a market downturn?

The advice is to avoid investing all at once, especially during a market downturn. Instead, investors should divide their investments into parts and gradually invest to mitigate the risks associated with further market declines.

How does the video suggest diversifying ETF investments?

The video suggests diversifying ETF investments by focusing on diversified ETFs instead of thematic or sectoral ETFs, which are riskier. This helps spread the investment risk and potentially leads to more stable returns over the medium-to-long term.