​When looking for ETFs that focus on companies with more downturn-resistant characteristics, you typically seek defensive stocks that can better withstand economic downturns than growth-oriented or cyclical companies. Defensive stocks often belong to consumer staples, healthcare, utilities, and telecommunications sectors—industries that tend to remain stable regardless of market fluctuations. Below are several categories of downturn-resistant ETFs:

• Consumer Staples ETFs​ tracks companies produce essential goods like food, beverages, household products, and personal care items, which people continue to buy even during recessions.   Consumer Staples ETFs: XLP, VDC, and FSTA.
• Healthcare ETFs  remain stable during downturns because Healthcare products and services are necessary, regardless of the economic climate.  ETFS: XLV, VHT and FHLC.
• Utility ETFs  Utility companies (e.g., electricity, water, and gas providers) are often considered recession-proof because people continue to need these services regardless of the economic situation.  ETFS: XLU, VPU, FUTY
• Dividend-Paying ETFs Dividend-paying companies are well-established, financially stable, and resilient during downturns. These companies usually have a history of generating consistent cash flows.  ETFS: DVY, VIG, FDVV
• Low Volatility ETFs  Low-volatility ETFs focus on stocks with lower price fluctuations, providing a smoother ride during market downturns.  ETFS: USMV, SPLV, FDLO

​These ETFs provide exposure to sectors that are less sensitive to economic fluctuations and may offer more stability in downturns.

​Exchange-traded funds (ETFs) are popular investment vehicles for investors seeking low-cost, diversified exposure to various stock market segments. Below, we'll explore the following ETFs, detailing their management fees, past 20 years' return on investment (ROI), and the significant segments they focus on, specifically targeting large companies.

1. VOO (Vanguard S&P 500 ETF) and VFIAX (Vanguard 500 Index Fund Admiral Shares) Both VOO and VFIAX focus on the S&P 500 index, which includes 500 of the largest U.S. companies across all sectors, with technology, consumer discretionary, healthcare, and financials being some of the most significant contributors to the index.VOO and VFIAX include prominent companies such as Apple, Microsoft, and Amazon. 

• Management Fee: VOO (0.03%), VFIAX (0.04%)
• Past 20-Year ROI: Around 8-9%

2. SPY (SPDR S&P 500 ETF Trust)​ Like VOO and VFIAX, SPY also tracks the S&P 500 index, exposing the largest U.S. companies across various sectors.

• Management Fee: 0.0945%
• ​Past 20-Year ROI: Around 8-9% annually

3. FXAIX (Fidelity 500 Index Fund)​ Similar to the other S&P 500 ETFs, FXAIX focuses on the S&P 500 index, investing in the largest U.S. companies, including technology, finance, and consumer sectors.

• Management Fee: 0.015
• Past 20-Year ROI: Around 8-9% annually

4. VCR (Vanguard Consumer Discretionary ETF) VCR focuses on the consumer discretionary sector, investing in companies involved in goods and services that are non-essential, such as Amazon, Tesla, and Nike. VCR provides targeted exposure to companies that thrive on consumer spending in discretionary goods, which tend to outperform during periods of economic growth.

• Management Fee: 0.10%
• Past 20-Year RO: Around 10-11% annually

5. VGT (Vanguard Information Technology ETF) ​VGT invests primarily in technology companies, including large-cap leaders like Apple, Microsoft, and NVIDIA.VGT focuses on the technology sector, one of the best-performing sectors over the past two decades, driven by advances in cloud computing, artificial intelligence, and semiconductors.

• Management Fee: 0.10%
• Past 20-Year RO: Around 10-12% annually

6. QQQ (Invesco QQQ Trust) and QQQM (Invesco NASDAQ 100 ETF)Both QQQ and QQQM track the NASDAQ-100 Index, focusing on large-cap companies in technology, biotech, and consumer services. Major holdings include Apple, Amazon, and Alphabet.

• Management Fee: QQQ (0.20%), QQQM (0.15%)
• Past 20-Year ROI: Around 10-12%

7. SMH (VanEck Vectors Semiconductor ETF)​SMH targets the semiconductor industry, investing in large companies such as Taiwan Semiconductor Manufacturing Company (TSMC), NVIDIA, and Intel. The semiconductor industry has experienced significant growth, driven by the increasing demand for chips in various sectors like electronics, automotive, and artificial intelligence.

• Management Fee: 0.35%
• Past 20-Year ROI: Around 10-12% annually

8. ​MAGS (The Roundhill Magnificent Seven ETF ) offers equal weight exposure to the “Magnificent Seven” stocks – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. MAGS is the first-ever ETF to track the Magnificent Seven.

• Management Fee: 0.29%
• Start Year: 2023

In Summary, Each of these ETFs provides exposure to major segments of the U.S. stock market, with some focusing on broad indices like the S&P 500 (VOO, SPY, FXAIX) and others targeting specific sectors like consumer discretionary (VCR), technology (VGT, QQQ, QQQM), and semiconductors (SMH). With low management fees and strong long-term returns, these ETFs are popular for investors seeking exposure to large-cap U.S. companies. The historical returns for most of these funds have averaged around 8-12% annually over the past 20 years, making them solid choices for long-term investment.​

​The S&P 500, which stands for the Standard & Poor’s 500, is a stock market index that tracks the performance of 500 largest public companies across 11 sections in the United States. It represents approximately 80% of the total US stock market capitalization, so it serves as a benchmark for the overall health of the US stock market. Investors widely use it to gauge market performance.

S&P 500 company lists are changing over time by an S&P Dow Jones Indices committee. They review company eligibility and make adjustments, such as adding or removing companies, based on their market capitalization, liquidity, and sector representation. The index is weighted by market cap, meaning larger companies significantly influence its performance.

The S&P 500's 11 sectors are based on the Global Industry Classification Standard (GICS). We can invest in the S&P 500 through ETFs or mutual funds. Typically, mutual funds have low management fees but more taxable activities. Therefore, mutual funds is ideal for tax-free retirement account like Roth IRA. CSPX, as an international ETF, has restrictions and tax implications for US citizens. Therefore, top choices include ETF IVV, ETF VOO, and Mutual Fund FXAIX.

Over the past 30 years (1995 – 2025), the S&P 500 has delivered an average annual return of approximately 10%-11%, including dividends. This long-term growth underscores its reputation as a reliable wealth-building vehicle.
​
In summary, the S&P 500 is more than just a stock market index; it’s a mirror of the U.S. economy and a powerful tool for investors to build long-term wealth. By understanding its sectors, investing options, and tax implications, you can make informed decisions to grow your portfolio. Over its history, the S&P 500 has proven its resilience, making it a cornerstone of smart investing strategies.​

ETFs and mutual funds are popular investment options that offer diversification and access to various assets.

ETFs, or Exchange-Traded Funds, are on-exchange funds that can be traded on an exchange, similar to stocks, allowing for multiple trades throughout the day. They were launched in 1993 with the SPDR S&P 500 and were designed to provide a flexible, cost-effective alternative to mutual funds, combining stock-like trading with diversification. ETFs have a lower minimum investment requirement (for example, $500 for VGT), decreased management costs (like VOO's 0.02%), the ability to trade throughout the day, and greater tax efficiency due to "in-kind" transactions. However, they offer limited access to active management, which comes with the potential risk of over-trading.

Mutual funds are off-exchange funds traded by companies, meaning they only trade at the end-of-day closing price. Mutual funds were introduced in 1924 with the Massachusetts Investors Trust, although their origins date back to the 18th century. These funds offer professional management and diversification for everyday investors, making them suitable for long-term investment strategies. However, there are several considerations to keep in mind. Mutual funds often have high balance requirements, higher management fees, and lower tax efficiency. Additionally, they are tied to specific trading platforms and do not allow intraday trading.

The following are some popular mutual fund and ETF management fees (as of 2025) 

• Vanguard 500 Index Fund (VFIAX) Mutual Fund 0.04%
• Vanguard S&P 500 ETF (VOO) ETF 0.03%
• Fidelity 500 Index Fund (FXAIX) Mutual Fund 0.015%
• Schwab S&P 500 Index Fund (SWPPX) Mutual Fund 0.02%
• SPDR S&P 500 ETF Trust (SPY) ETF 0.0945%
• iShares Core S&P 500 ETF (IVV) ETF 0.03%

Let's talk about tax efficiency. The ETF does not distribute capital gains. So, the only tax the investor faces is on capital gains when selling the shares. The annual return remains unaffected by taxes for the first 10 years. The mutual fund distributes capital gains annually. Let's assume the fund generates capital gains of $200 in the first year, distributed to the investor. The investor would pay a 15% tax, resulting in $30 in taxes. The tax reduces the return for the investor each year. ​

​In 1884, the renowned French writer Guy de Maupassant penned a short story called "The Necklace." Many people are likely familiar with it. In the story, the heroine borrows an expensive necklace for a social party. Unfortunately, she loses the necklace at the event. To make amends, she endures more than ten years of hard work and hardship. When she finally saves enough to buy an equally expensive necklace to return to the owner, she learns that the original necklace was, in fact, fake.

When I first read this story as a child, it served as a warning against being driven by vanity and spending beyond my financial means. However, as I grew older, I began to notice that this issue of excessive consumption is widespread. 

Today, consumerism is at an all-time high. Reflecting on history, we can identify key events that have propelled consumerism to its peak.

The industrial revolution began with the invention of the textile machine in 1764. This revolution significantly increased production capacity, leading to a sharp decline in commodity prices. As a result, people no longer purchased goods solely based on necessity; instead, they began to buy products based on personal preferences or to signify their identity and wealth.

An important historical event was the introduction of credit services in 1950 when the Diner's Club credit card was officially launched. This was followed by the introduction of MasterCard and Visa in 1966 and 1967, respectively. The emergence of credit cards allowed consumers to borrow money for their purchases, thereby enabling advanced consumption. As a result, consumers' purchasing power significantly increased, leading to a surge in commodity advertising that promoted numerous products and fostered an image of high consumption.

The establishment of the World Trade Organization (WTO) in 1995 marked the beginning of a new era of globalization. Globalization facilitates the flow of goods, leading to more choices for consumers and an increase in the popularity of consumerism. Objectively, consumption is a normal part of people's lives.

We typically consume based on our physiological and psychological needs. Through consumption, we can enhance our quality of life and overall happiness. The concept of "retail therapy" is often mentioned in this context, suggesting that buying things can lift our spirits. However, consumerism encourages excessive buying and accumulating possessions. This mindset can lead to blind and wasteful consumption, ultimately harming our well-being.

Consumerism primarily exploits people's tendencies to follow the crowd and engage in comparison with others. When influenced by these psychological effects, our decisions often stem from impulse rather than our actual needs. This excessive consumption leads to various problems, including the expansion of personal desires, debt crises, and the waste of resources.

Consumerism can positively stimulate economic growth and social activities in society. However, excessive consumption often leads to anxiety, dissatisfaction, and dependence among individuals, which can ultimately diminish our happiness. Therefore, balancing consumption and financial health is essential to mitigate the adverse effects of excessive consumption promoted by consumerism.

Is it okay to borrow from a credit card?  
Is it true that I shouldn't accept the promotion and raise because I will pay more in taxes after moving into a higher tax bracket?  
The chiropractic service accepts HSA. Is using my pre-tax dollars saved in HSA to pay for it a great deal?  
Is it true that when salary is too high we can’t invest in Roth IRA? 

If you answered "yes" to any of the preceding questions, then you may need to learn more about personal finance. It's disappointing that our schools often fail to teach us practical financial living skills. It's unfortunate to witness people struggling with finances due to poor decisions or missing out on opportunities to save or invest.

​Financial literacy involves understanding money and learning how to spend it wisely to generate more. Allowing money to work for us can enhance our lives and achieve greater financial freedom.

Personal finance involves managing an individual's financial activities, such as budgeting, saving, investing, and planning for future goals. It requires making informed decisions about spending, managing debt, and preparing for retirement.

Effective personal finance ensures financial security and stability, relieving significant burdens and allowing us to live life on our own terms. This financial freedom enables us to take risks, enjoy life with less stress, and focus on what truly matters—our goals and relationships.

To achieve financial stability, it’s essential to learn how to manage money and build wealth. Whether you are just beginning your financial journey or looking to enhance your current situation, understanding core personal finance principles and practical tips help steering toward success. 

As we discuss the topic, we will summarize them in this article. So far, we have covered the following topics: establishing the philosophy of money, securing sources of income, managing the budget and saving, investing, planning for retirement, managing debt, managing taxes, and estate planning.​​

Establishing the Philosophy of Money
We can't manage anything when we don't have a full understanding. We have to start to enrich our knowledge about money and wealth to build financial security. The first step should be to grasp the essence of money, its rules, and how to make it a friend rather than an enemy. This journey also involves understanding ourselves, our goals, and the world. The following are the topics discussed: ​

• 002 What is Financial Literacy and Why You Should Have It
• 003 How  to Make Friends with Money
• 003 How to Understand Wealth
• 004 How to Interpret Wealth with Net-Worth in US
• 005 How Does Minimalism Play a Role in Wealth Creation
• 006 Learning from Mr. Money Mustache for Building Wealth

Securing Source of Incomes 
To build financial freedom, we have to start with work hard to make money. Making money doesn’t have to work because there is passive income where money can work hard for us as well. We will explore how to create sources of income is the first step. The following are the topics discussed: 

• 007 How to Choose a Career
• ​008 What is Passive Income
• 009 How to Build Sources of Income  

Managing Budgeting and Saving
Money cannot be saved without a proper budget strategy where tracking our income and expenses to cover the cost of living and yet can save enough for both short-term and long-term goals. A smart budget would avoid overspending and prioritizes essential financial objectives, such as paying off debt, saving for emergencies, and building wealth. The following are the topics discussed: 

• 010 Getting Started with Budgeting
• 011 How to Control Grocery Shopping Budget
• 012 What Is An Emergency Fund, And How Much You Need​
• 013 How To Set Long-Term And Short-Term Financial Goals​
• 014! Why It’s Not Wise to Buy Luxury Goods 
• 003 Why Consumerism Is Harmful

Investing
Investing is an essential component of building wealth over time. Whether through stocks, bonds, or mutual funds, the goal is to generate a return that outpaces inflation and grows your assets. Understanding the risk-reward balance, diversification, and compound interest is crucial for making informed investment decisions. The following are the topics discussed: 

• 015 Why You Have to Understand HSA
• 016 Why You Would Invest in S&P500 and How To
• 017 What is a Roth IRA and How to Invest
• 018 Why Should We Set Up a Roth IRA Account for Children
• 019 ETFs vs. Mutual Funds: A Clear Comparison​
• 020 The Top ETF Options
• 021 What is Bond and How to Invest
• 022 How to Manage RSU

​Planning for the Retirement
Planning for retirement is one of the most critical financial strategies. Contributing to retirement accounts like 401(k)s or IRAs ensures a secure income once you stop working. The earlier you start saving for retirement, the better, thanks to the power of compound interest. The following are the topics discussed: 

• 023 How to Buy Medical Insurance after Retirement​
• 020 What is Social Security and How to Maximize the Benefits
• 024 Withdrawal strategies in retirement
• 025 Retirement calculators and projections

Managing the Debt
Managing and eliminating debt is vital for financial health. High-interest debts like credit card balances can quickly spiral out of control, so it's essential to have a clear strategy for paying them off. Debt management also involves understanding credit scores and making timely payments. The following are the topics discussed: 

• 026 Credit card management 
• 027 Student loans and personal loans
• 028 Debt repayment strategies (debt snowball, debt avalanche)
• 029 Building and maintaining a good credit score

Managing Taxes
Taxes can take a big chunk out of your income, so it's essential to understand how to minimize your tax liability. ​We have to make it under control reduce it is about reducing spending.

• 030 Understanding tax brackets and deductions
• 031 Tax-advantaged accounts (Roth IRAs, HSAs, etc.)
• 032 Gift and Tax 
• 035 National Disaster Tax Benefits
• 033 Estate Tax and Inheritance Tax Considerations

Managing Estate Planning
Estate planning it’s about generation wealth. If ensures that your assets are distributed according to your wishes after your death and can also help reduce estate taxes for your beneficiaries. The following are the topics discussed: 

• 034 Wills and trusts
• 036 Why Shouldn’t We Give Property Directly to Children

​
In summary, personal finance is about making informed decisions and creating strategies that work for your life. By understanding the fundamental concepts and following the best practices, we can take control of our financial future and work towards achieving your financial goals.​Start to take care if your financial wellness today. Feel free to ask questions if any topic is missing.