As part of my response to recent market volatility, I’ve been using a low-cost S&P 500 ETF like VFV — and occasionally CSPX — to stay invested while managing risk.
Markets have been anything but calm over the past year. Inflation, central bank decisions, and geopolitical headlines continue to trigger sharp movements in equity prices — sometimes within a single trading day. In this kind of environment, I’ve found myself thinking more about liquidity, diversification, and how to stay invested without getting overwhelmed. I’ve used an S&P 500 ETF to maintain exposure to the U.S. market through it all.
Starting in 2024, I reduced my exposure to certain individual stocks and sector-specific funds. Instead, I began moving a portion of my cash into high-interest savings accounts. This gave me some breathing room. It was a chance to earn stable returns with no risk while still keeping funds accessible if buying opportunities arose.
That shift also changed how I invest during market pullbacks. Rather than making large lump-sum investments, I now buy in small amounts — often just a few shares at a time. This is especially true when volatility spikes. My online discount brokerage offers a list of commission-free ETFs, which makes this easier. Even if I only buy one share, I don’t pay a trading fee. This helps me stick to a dollar-cost averaging approach without second-guessing every move.
Why I Invest in an S&P 500 ETF Like VFV
One of the ETFs I’ve been gradually adding to is VFV, the Vanguard S&P 500 Index ETF listed on the Toronto Stock Exchange. It gives me exposure to the 500 largest U.S. companies — from tech and healthcare to industrials and consumer staples. All of this is in one fund. This S&P 500 ETF has a management expense ratio (MER) of 0.09% as of January 2025, which is still considered low for a broad-market index fund. Since it’s traded in Canadian dollars, I don’t have to worry about foreign exchange conversion each time I buy. VFV tracks the U.S.-listed VOO, which is Vanguard’s S&P 500 ETF listed on the NYSE. VOO is known for its ultra-low 0.03% expense ratio and high liquidity.
You can learn more about VFV on Vanguard’s site.
While researching alternatives, I also came across another ETF called CSPX, offered by iShares and also designed to track the S&P 500. It’s listed on the London Stock Exchange and structured under the UCITS framework, which is common in Europe. CSPX is domiciled in Ireland. Based on what I’ve read, this offers tax advantages for some European investors due to a 15% U.S. dividend withholding tax treaty. It also has a total expense ratio (TER) of 0.07%, and instead of paying out dividends, it reinvests them internally — a structure known as accumulating.
You can check out CSPX on iShares.
I haven’t bought CSPX myself (since I’m based in Canada), but I found it helpful to learn about its structure and compare it to VFV. Both ETFs aim to deliver the performance of the S&P 500. Each is structured as an S&P 500 ETF optimized for a different region.
I personally find that investing gradually in an S&P 500 ETF helps me stay committed during uncertain times without overreacting to daily headlines.
How I Stay Invested During Market Dips
As for market timing — that’s something I’ve learned not to stress over. While some studies suggest Tuesdays tend to be less volatile, trying to pinpoint exactly when to buy just doesn’t work for me. Instead, I focus on staying consistent. If the market drops, I’ll often buy just a few shares. Sometimes it’s 1 or 2, sometimes 5 or 10. It depends on how things are moving. Since there’s no commission, small trades don’t hurt.
S&P 500 Performance Over the Long Term
Over the past 10 years, the S&P 500 has delivered an average annual return of about 13%, including dividends. That includes bull runs, corrections, and major global events. Of course, past performance doesn’t guarantee future results. But it gives me confidence in staying invested with a long-term mindset.
Please note that this post is not intended to serve as financial advice. The strategies and choices I’ve shared reflect my personal experience, risk tolerance, and financial goals. Every individual’s situation is unique, and what works for one person may not be appropriate for another. Before making any investment decisions, I recommend consulting with a qualified financial advisor who can provide guidance tailored to your specific circumstances.
Check out Chipmunk On The Hunt blog for inspiration and ideas.
