An index fund is an investment product designed to track the performance of a particular financial market index, such as the S&P 500 or the Nasdaq Composite. Compared to individual stocks, passively managed index funds offer certain advantages, including instant diversification across a group of companies. Index funds also allow investors to gain exposure to the stock market without the burden of keeping tabs on individual stocks.

With that in mind, the S&P 500 and the Nasdaq Composite have dropped into bear market territory in 2022, making the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) and the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) attractive investment ideas right now, especially for risk-averse investors.

As the names imply, both ETFs are comprised of companies that consistently generate enough cash to pay relatively high dividends, and companies like that tend to hold up well during volatile market conditions. In fact, both ETFs have outperformed the broader S&P 500 over the past year.

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Source Fool.com