The resilience of ETFs and index funds to crises comes from their inherent diversification and long-term focus. During market downturns, while some companies may collapse, the global economy has historically recovered and grown. By owning a piece of this global economy, you participate in its recovery.

Financial crises are opportunities for ETF investors. During downturns, automatic periodic investments buy more shares at lower prices, positioning you better for the inevitable recovery. This dynamic turns short-term volatility into long-term advantage.

The key is maintaining discipline during turbulence. Markets have overcome world wars, pandemics, financial crises, and recessions. Investors who maintained their positions in diversified ETFs through these events not only recovered their losses but frequently achieved superior returns.

Rebalancing is the process of adjusting your portfolio to maintain your target asset allocation. Without rebalancing, a 70/30 stock/bond portfolio can become 80/20 during a bull market, increasing your risk without you realizing it.

Establish a fixed frequency to review your portfolio: annually is sufficient for most investors. If any asset class deviates more than 5% from its target allocation, it's time to rebalance. This forces you to systematically sell high and buy low.

Consider rebalancing with new contributions before selling existing positions. If stocks have risen significantly, direct your new investments toward bonds until balance is restored. This strategy minimizes the tax implications of rebalancing.

Don't limit your portfolio to your domestic market. Global ETFs allow you to access growth opportunities in developed and emerging markets, reducing geographic concentration risk. Different regions experience economic cycles at different times.

A typical global structure might include 50% domestic market, 30% international developed markets, and 20% emerging markets. This diversification protects you against the risk of a specific region experiencing prolonged difficulties.

Emerging markets, while more volatile, have historically offered higher economic growth rates. Including exposure to these markets through ETFs allows you to capture this growth while keeping risk controlled through diversification.

Success with ETFs and index funds requires adopting a decades-long perspective, not years. Markets can be volatile in short periods, but the historical trend is clearly upward. Every temporary decline is an opportunity to accumulate more shares at favorable prices.

Develop immunity to daily financial news. Sensationalist headlines and apocalyptic predictions sell, but rarely reflect long-term reality. Keep your focus on your personal financial goals, not the media noise of the moment.

Remember that time in the market beats timing the market. Even professional investors struggle to correctly time entries and exits. Your advantage as an individual investor lies in your ability to hold positions for decades, something many institutional funds cannot do.

ETFs and index funds are not just investment instruments; they are tools for financial freedom. By automating your investment strategy and keeping costs low, you maximize the portion of your returns that actually works for you, not for managers or intermediaries.

The simplicity of this strategy is its greatest strength. You don't need to be a finance expert, constantly follow markets, or make complex decisions. Once your ETF portfolio is established, global economic growth works for you 24 hours a day.

Start today, not tomorrow. Every day you postpone starting your investment strategy is one less day of compound growth. With ETFs and index funds, you have access to the same tools used by the world's most sophisticated investors.