Market crashes are uncomfortable, but they are also where some of the best long-term opportunities are created.
History shows that share markets have always recovered from major downturns, even though it rarely feels that way at the time.
If the ASX and global markets were to suffer a sharp sell-off, I wouldn't be trying to pick the bottom or trade in and out. Instead, I would be looking to deploy capital into high-quality exchange-traded funds (ETFs) that offer diversification, resilience, and strong long-term growth potential.
These are the ASX ETFs I would be buying if markets fell sharply.
The first ASX ETF I would reach for is the iShares S&P 500 ETF. It provides exposure to 500 of the largest and most profitable stocks in the United States, many of which have proven their ability to survive and thrive through multiple market cycles.
Its holdings span industries such as technology, healthcare, consumer goods, and industrials. This includes names such as Microsoft (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ), Costco Wholesale Corp (NASDAQ: COST), Visa Inc (NYSE: V), and Nvidia Corp (NASDAQ: NVDA).
A market crash often hits even the strongest businesses indiscriminately. Buying this fund during those periods has historically given patient investors exposure to world-class stocks at far more attractive valuations.
Closer to home, I would also be looking at the Vanguard Australian Shares ETF. This fund tracks the broader Australian share market and provides instant exposure to the country's 300 largest stocks.
Its portfolio includes Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL), Coles Group Ltd (ASX: COL), and Wesfarmers Ltd (ASX: WES). These businesses dominate their respective industries and play a central role in the Australian economy.
For long-term investors, a market crash can be an opportunity to buy into the Australian market at valuations that don't come around very often.
Finally, I would want some exposure to a long-term structural growth theme that is unlikely to disappear in a downturn.
The Betashares Global Cybersecurity ETF invests in stocks that are providing cybersecurity software and services. This includes Palo Alto Networks (NASDAQ: PANW), CrowdStrike Holdings (NASDAQ: CRWD), Fortinet (NASDAQ: FTNT), and Zscaler (NASDAQ: ZS).
As digital threats continue to rise, spending on cybersecurity remains a priority for governments and businesses regardless of economic conditions.
If the market crashed, high-growth thematic ETFs like HACK would likely be hit hard. But for investors with a long time horizon, that volatility could present an opportunity to buy into an essential industry at discounted prices.
The post These are the ASX ETFs I would buy if the market crashed tomorrow appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, CSL, Costco Wholesale, CrowdStrike, Fortinet, Microsoft, Nvidia, Visa, Wesfarmers, Zscaler, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and Palo Alto Networks and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended BHP Group, CSL, CrowdStrike, Microsoft, Nvidia, Visa, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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