Listen to Gargi Chaudhuri, Americas Chief Investment and Portfolio Strategist, distill what investors should know about investing in volatile times in 3 key takeaways.
Hi, I’m Gargi Chaudhuri, iShares Chief Investment and Portfolio Strategist for the Americas, and we recently hosted a webinar for retail investors about how to invest in volatile times.
Here are the key takeaways from the call, and next steps you might consider:
But first, a snapshot of what just happened...
The tariffs announced April 2 were much bigger than investors were expecting, prompting violent short-term price action amid uncertainty over where trade policy eventually lands.
In addition to the tariff uncertainty came lower expectations for economic growth.
Combine those and you have a recipe for market turmoil.
It’s too soon to predict how all this will play out. But the longer the uncertainty and volatility persist, the higher the odds the economy tips into recession.
So right now, we’re watching the three Rs:
Race to the ‘landing zone’ where will the overall effective tariff rate settle?
Reaction from countries: will there be retaliatory measures? How will additional negotiations progress?
Response from companies and central banks: how will companies manage higher tariffs? And what will the Fed do in the face of potentially slowing growth and rising inflation?
It’s possible that volatility and uncertainty around policy, growth and inflation continues for some time. Still, our key message is STAY INVESTED.
Over the past 20 years, an investor who stayed in the market would have made substantially more than one who missed just five top-performing days.1
That said, investors with a shorter time horizon or lower tolerance for risk may consider building in some defensiveness and focusing on diversification. Here are some options:
● The iShares Gold Trust (IAU) for convenient, cost-effective exposure to gold, historically a way for investors to diversify portfolios and hedge against geopolitical uncertainty.
● The iShares 0-3 Month Treasury Bond ETF (SGOV), which can be used to put cash to work and to seek stability in your portfolio.
● The iShares MSCI USA Min Vol Factor ETF (UMSV) for exposure to U.S. stocks with potentially lower risk than the broad market.
Long term investors who are more comfortable taking risk may consider options like:
● The iShares MSCI USA Quality Factor ETF (QUAL), which provides access to profitable U.S. companies that have low leverage and demonstrated consistent earnings over time.
● The iShares U.S. Equity Factor Rotation Active ETF (DYNF), an actively managed ETF that rotates to the investment styles – or factors -- that BlackRock believes will do best based on forward-looking insights.
● The iShares U.S. Thematic Rotation Active ETF (THRO), which seeks to dynamically rotate exposure to U.S. market themes ranging from long-term, structural forces to rapidly evolving trends.
You can research these and other ETFs at iShares.com, which can be a great resource for strategies to help you navigate market volatility.
Again, the key is to STAY INVESTED. That way you don’t risk missing out on a recovery that may be just around the corner.
Thank you for watching.
End of video disclosures:
Investing involves risk, including possible loss of principal.
This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This material is provided for educational purposes only and is not intended to constitute investment advice or an investment recommendation within the meaning of federal, state or local law. You are solely responsible for evaluating and acting upon the education and information contained in this material. BlackRock will not be liable for direct or incidental loss resulting from applying any of the information obtained from these materials or from any other source mentioned. BlackRock does not render any legal, tax or accounting advice and the education and information contained in this material should not be construed as such. Please consult with a qualified professional for these types of advice.
This material contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial professional before making an investment decision.
For IAU:
This information must be preceded or accompanied by a current prospectus. Investors should read and consider it carefully before investing.
Following an investment in shares of the Trust, several factors may have the effect of causing a decline in the prices of gold and a corresponding decline in the price of the shares. Among them: (i) Large sales by the official sector. A significant portion of the aggregate world gold holdings is owned by governments, central banks and related institutions. If one or more of these institutions decides to sell in amounts large enough to cause a decline in world gold prices, the price of the shares will be adversely affected. (ii) A significant increase in gold hedging activity by gold producers. Should there be an increase in the level of hedge activity of gold producing companies, it could cause a decline in world gold prices, adversely affecting the price of the shares. (iii) A significant change in the attitude of speculators and investors towards gold. Should the speculative community take a negative view towards gold, it could cause a decline in world gold prices, negatively impacting the price of the shares.
Shares of the Trust are not deposits or other obligations of or guaranteed by BlackRock, Inc., and its affiliates, and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency. The sponsor of the Trust is iShares Delaware Trust Sponsor LLC (the “Sponsor”). BlackRock Investments, LLC ("BRIL"), assists in the promotion of the Trust. The Sponsor and BRIL are affiliates of BlackRock, Inc.
For all other iShares Funds:
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in the value of debt securities. Credit risk refers to the possibility that the debt issuer will not be able to make principal and interest payments. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency and its return and yield will fluctuate with market conditions.
There can be no assurance that performance will be enhanced or risk will be reduced for funds that seek to provide exposure to certain quantitative investment characteristics ("factors"). Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. In such circumstances, a fund may seek to maintain exposure to the targeted investment factors and not adjust to target different factors, which could result in losses. The iShares Minimum Volatility Funds may experience more than minimum volatility as there is no guarantee that the underlying index's strategy of seeking to lower volatility will be successful.
Actively managed funds do not seek to replicate the performance of a specified index, may have higher portfolio turnover, and may charge higher fees than index funds due to increased trading and research expenses. There is no guarantee that the classification system used to determine a rotation model or strategy will achieve its intended results. The funds may engage in active and frequent trading of their portfolio securities which may result in higher transaction costs to the funds.
The funds are distributed by BRIL (together with its affiliates, “BlackRock”). The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the companies listed above.
© 2025 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
1 Source: BlackRock, Bloomberg as of 12/31/2024. “Market” represented by the S&P 500 Index, an unmanaged index that is generally considered representative of the U.S. stock market. Past performance does not guarantee future results. It is not possible to invest directly in an index.
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Market turbulence can arrive unexpectedly and while it can be a nerve-wracking experience, it's often short-lived and can be a great source of opportunity for investors.
Listen to iShares Investment Strategist Kristy Akullian discuss what the U.S. tariffs could mean for the economy and for portfolios.
The United States has sharply escalated its trade protectionism. A new 10% tariff has been announced for most U.S. imports, alongside higher duties across dozens of countries including China and the European Union. Canada and Mexico have been spared new levies for now. The key? How long these elevated tariffs last and their impact on growth, inflation, and corporate earnings.
Here are our initial takeaways on the White House’s tariff announcements:
1. The dust is still settling on the details. We think they add up to a U.S. average effective tariff rate of between 20-25%. The rate is set to be higher than we – and markets – had expected. We see a bigger drag on growth and more inflation pressures.
2. Also key is how long policy uncertainty persists – the longer it does, the greater the potential damage to economic activity. We expect to continue to see more volatility in the weeks and months ahead and near-term pressure on U.S. equities.
3. Still, we think policy uncertainty could dissipate in coming months and could be accompanied by tax cuts and deregulation. Even if sentiment is weakening, we still see solid U.S. corporate and economic fundamentals, Our base case? Sluggish growth and sticky inflation, not recession.
So, what does that all mean for your portfolio? While the full impact remains uncertain, these tariffs introduce new risks and opportunities. Given ongoing policy uncertainty, we believe a focus on resilience and risk management remains key.
We like quality at the core of portfolios. But for investors who are worried about economic growth and want to reduce risk in their portfolio, they can also consider Minimum Volatility strategies that may potentially limit drawdowns and diversify away from some of the most concentrated parts of broader indexes. Inflation-protected bonds can also make sense given the risk that inflation rises from tariff implementation. Finally, we see a strong case for alternative asset classes and strategies to serve as additional diversifiers beyond a traditional 60/40 portfolio. We like gold as a potential hedge against geopolitical volatility, and market neutral strategies that can potentially do well in a variety of macro environments.
The situation remains fluid. A bright spot may be more clarity on the policy front. We know that above all, markets hate uncertainty. As more information becomes available, and investors become more confident, a positive catalyst for markets could develop. For investors who want to position for such an outcome, we like systematic, active, rotational strategies that are purpose built to adjust with changing market conditions.
In times of heightened volatility, head over BlackRock Advisor Center or iShares.com to see how our investors are thinking about markets.
End of video, written disclosures:
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Past performance does not guarantee future results.
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date indicated and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by BlackRock, its officers, employees or agents. This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any of these views will come to pass. Reliance upon information in this material is at the sole discretion of the viewer.
There is no guarantee that the classification system used to determine the rotation model or strategy will achieve its intended results. The fund may engage in active and frequent trading of its portfolio securities which may result in higher transaction costs to the fund. The fund is actively managed and does not seek to replicate the performance of a specified index.
Alternative investments present the opportunity for significant losses and some alternative investments have experienced periods of extreme volatility. Alternative investments may be less liquid than investments in traditional securities.
The iShares Minimum Volatility Funds may experience more than minimum volatility as there is no guarantee that the underlying index's strategy of seeking to lower volatility will be successful.
This material contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial professional before making an investment decision. This material does not constitute any specific legal, tax or accounting advice.
Please consult with qualified professionals for this type of advice.
The iShares Minimum Volatility Funds may experience more than minimum volatility as there is no guarantee that the underlying index's strategy of seeking to lower volatility will be successful.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets and in concentrations of single countries.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in the value of debt securities. Credit risk refers to the possibility that the debt issuer will not be able to make principal and interest payments.
Diversification and asset allocation may not protect against market risk or loss of principal.
Prepared by BlackRock Investments, LLC, member FINRA.
©2025 BlackRock, Inc or its affiliates. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc. or its affiliates. All other marks are the property of their respective owners.
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MARKET INSIGHTS
Discover factors behind recent stock market volatility, how to manage risk during turbulent times, and how recent economic data may impact the Fed’s outlook.
Understanding the source of turbulence can help you prepare for it, whether it is a world event that has taken markets by surprise or a broader economic downturn. Here, we lay it all out — from the risks you might want to look out for to which investment strategies to explore. Read on to better prepare for market turbulence and potentially benefit from it.
The fight or flight instinct has helped our ancestors survive, but when it comes to investing, it’s often a losing strategy. When volatility strikes, panicked selling to avoid further losses could result in selling investments for less than you purchased them for. What’s worse, you run the risk of missing out on a rebound that may be right around the corner.
Missing these rebounds, or top-performing days, could harm long-term performance. When you look at an investment of $100,000 in stocks over a 20-year period, an investor who stayed invested would have made substantially more than one who missed just five top-performing days.
Missing top-performing days can hurt your returns
Source: BlackRock, Bloomberg as of 12/31/2024. Stocks are represented by the S&P 500 Index, an unmanaged index that is generally considered representative of the U.S. stock market. Past performance does not guarantee future results. It is not possible to invest directly in an index.
Image description: Bar chart showing the potential decrease in investment returns (over a 25-day period) when top performing days are missed.
If the ups and downs of your investment returns are making you queasy, review the allocation between stocks and bonds. Bonds can help counter balance the peaks and troughs of stock prices. Learn more about portfolio construction with our portfolio builder.
If market volatility leaves you wanting to press the eject button, consider ETFs designed to protect on the downside so you can stay invested for the long run.
Recessions can trigger a significant decline in stocks and a barrage of negative news stories that make it easy to lose perspective. Thankfully, the average recession only lasts around a year and investors who wait it out may be handsomely rewarded for their patience.1 Since 1926, the average performance of U.S. stocks in the year following a recession was nearly 25%. Investors who cannot wait for a bounce back, could consider three strategies to help find resilience against economic headwinds.
Average performance before, during and after a recession since 1929
Source: Morningstar as of 12/31/2024. Stock market represented by the S&P 500 Index from 3/4/57 to 12/31/2024. Past performance does not guarantee future results.
Image description: Bar chart showing the average performance of U.S. stocks before, during and after a recession over a three-year period.
Stocks: Companies with stable earnings, relatively low debt, and strong cash flows are associated with a characteristic referred to as “quality” and can all act as a buffer against losses in shrinking economies. Gain access to a basket of companies with these characteristics with the iShares MSCI USA Quality Factor ETF (QUAL).
Bonds: Investment grade bonds are loans by high quality issuers which have been deemed by independent ratings agencies to be less likely to miss an interest payment or be unable to repay the initial loan. Seek to track the entire U.S. investment grade bond market with the iShares Core U.S. Aggregate Bond ETF (AGG).
If the recession risk is too high to handle, consider moving into lower risk securities like U.S. Treasuries, where interest payments and initial loan values are guaranteed by the United States government. The iShares 7-10 Year Treasury Bond ETF (IEF) provides exposure to a U.S. Treasury bonds with remaining maturities between 7-10 years.2
Inflation deteriorates purchasing power, increasing the likelihood of your investments falling short. While inflation may be outside of your control, there are investments that can help manage the impact of inflation and help keep you on track.
Treasury Inflation-Protected Securities (TIPS) are U.S. government bonds with a face value that rises and falls with inflation, protecting investors from the risk of higher-than-expected inflation. Access a whole basket of TIPS in just one trade with iShares 0-5 Year TIPS Bond ETF (STIP).
Physical assets like real estate and commodities can help protect investors from rising inflation and diversify portfolios. The costs for food, energy, and housing account for a large part of the Consumer Price Index (CPI).1 Investing in the assets driving inflation can help your returns keep pace with it.
When inflation is high, excess cash sitting in your bank account isn't doing you any favors. Short term bonds can help access growth while keeping without committing to a long-term investment.
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1 Bureau of Labor Statistics as of February 2023. Index weighting for food, energy, and shelter was 13.5%, 7.1%. and 34.4% respectively.
2 While the fund invests in U.S. Treasuries, an investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency and its return and yield will fluctuate with market conditions.
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares Fund and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
The iShares Trusts are not investment companies registered under the Investment Company Act of 1940, and therefore are not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940. Investments in these products are speculative and involve a high degree of risk.
Following an investment in shares of the Trust, several factors may have the effect of causing a decline in the prices of gold and a corresponding decline in the price of the shares. Among them: (i) Large sales by the official sector. A significant portion of the aggregate world gold holdings is owned by governments, central banks and related institutions. If one or more of these institutions decides to sell in amounts large enough to cause a decline in world gold prices, the price of the shares will be adversely affected. (ii) A significant increase in gold hedging activity by gold producers. Should there be an increase in the level of hedge activity of gold producing companies, it could cause a decline in world gold prices, adversely affecting the price of the shares. (iii) A significant change in the attitude of speculators and investors towards gold. Should the speculative community take a negative view towards gold, it could cause a decline in world gold prices, negatively impacting the price of the shares.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in the value of debt securities. Credit risk refers to the possibility that the debt issuer will not be able to make principal and interest payments.
An investment in fixed income funds is not equivalent to and involves risks not associated with an investment in cash.
Commodities' prices may be highly volatile. Prices may be affected by various economic, financial, social and political factors, which may be unpredictable and may have a significant impact on the prices of commodities.
TIPS can provide investors a hedge against inflation, as the inflation adjustment feature helps preserve the purchasing power of the investment. Because of this inflation adjustment feature, inflation protected bonds typically have lower yields than conventional fixed rate bonds and will likely decline in price during periods of deflation, which could result in losses. Government backing applies only to government issued securities, and does not apply to the funds.
Real estate investment trusts ("REITs") are subject to changes in economic conditions, credit risk and interest rate fluctuations.
There can be no assurance that performance will be enhanced or risk will be reduced for funds that seek to provide exposure to certain quantitative investment characteristics ("factors"). Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. In such circumstances, a fund may seek to maintain exposure to the targeted investment factors and not adjust to target different factors, which could result in losses.
The iShares Minimum Volatility Funds may experience more than minimum volatility as there is no guarantee that the underlying index's strategy of seeking to lower volatility will be successful.
There can be no guarantee that the Buffered Funds will be successful in their strategy to provide downside protection against Underlying ETF losses. The Funds do not provide principal protection or non-principal protection, and, despite the Approximate Buffer (the “Buffer”), an investor may experience significant losses on their investment, including the loss of their entire investment. In the event an investor purchases Fund shares after a Hedge Period begins or sells Fund shares prior to the end of the Hedge Period, the returns realized by the investor will not match those that the Funds seeks to provide. In periods of extreme market volatility, the Funds' return may be subject to downside protection significantly lower than the Buffer and an upside limit significantly below the Approximate Cap (the "Cap"). A new Cap is established during each Rebalance Period and is dependent upon current market conditions. As such, the Cap is likely to change, sometimes significantly, from one Hedge Period to the next.
This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
This material contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial professional before making an investment decision.
The information provided is not intended to be tax advice. Investors should be urged to consult their tax professionals or financial professionals for more information regarding their specific tax situations.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Bloomberg, BlackRock Index Services, LLC, Cboe Global Indices, LLC, Cohen & Steers, European Public Real Estate Association (“EPRA® ”), FTSE International Limited (“FTSE”), ICE Data Indices, LLC, Nasdaq, Inc., NSE Indices Ltd, JPMorgan, JPX Group, London Stock Exchange Group (“LSEG”), MSCI Inc., Markit Indices Limited, Morningstar, Inc., Nasdaq, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), Nikkei, Inc., Russell, S&P Dow Jones Indices LLC or STOXX Ltd. None of these companies make any representation regarding the advisability of investing in the Funds. With the exception of BlackRock Index Services, LLC, who is an affiliate, BlackRock Investments, LLC is not affiliated with the companies listed above.
Neither FTSE, LSEG, nor NAREIT makes any warranty regarding the FTSE Nareit Equity REITS Index, FTSE Nareit All Residential Capped Index or FTSE Nareit All Mortgage Capped Index. Neither FTSE, EPRA, LSEG, nor NAREIT makes any warranty regarding the FTSE EPRA Nareit Developed ex-U.S. Index, FTSE EPRA Nareit Developed Green Target Index or FTSE EPRA Nareit Global REITs Index. “FTSE®” is a trademark of London Stock Exchange Group companies and is used by FTSE under license.
© 2025 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN, THE MARKET IS YOURS and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
iCRMH0425U/S-4396744
