4 Funds to Cut Your Risk in a Stock Market Correction

These low-volatility funds can keep your portfolio from getting creamed during the next selloff.

I don’t think that the recent market rumblings are signaling the onset of a bear market. But stocks are richly priced, and we’re overdue for at least a 10% plunge in share prices, which typically occurs once or twice a year, shaking investors’ confidence.

Particularly if the eight-year bull market has pushed your allocation to stocks higher than you intended, this could be an ideal time to reduce risk. We suggest here three first-rate exchange-traded funds and one mutual fund that let you ratchet down risk without making the mistake of dumping all your stocks.

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Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.