Worried About Inflation Anxiety? Here’s Why US Broad-Market ETFs Are Your Safe Haven


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Do you also feel like your salary can never keep up with skyrocketing prices? You look at your bills and feel anxious and powerless. Official data from Taiwan’s Directorate-General of Budget, Accounting and Statistics confirms this struggle: [wage growth has indeed lagged behind inflation](https://ketagalanmedia.com/2025/07/31/why-taiwans-average-wage-growth-is-slower-than-minimum-wage-growth/).

> Yes, there is a simple and effective strategy to help you. That strategy is long-term investment in “[US stock](https://www.biyapay.com/en/stock/list/US/A) broad-market index ETFs.” This is not just an investment — it is your financial safe haven during an inflation storm and our top US stock recommendation category.

## Key Takeaways

\* US broad-market index ETFs are an excellent way to fight inflation, preserving and growing the real value of your money. \* Investing in US broad-market index ETFs is like becoming a shareholder in hundreds of the world’s top companies and sharing in their growth. \* US broad-market index ETFs have extremely low fees and provide maximum diversification, making your investment safer. \* Historical data shows that long-term investment in US broad-market index ETFs delivers strong returns and helps you build wealth. \* Dollar-cost averaging into US broad-market index ETFs with patience is the most effective wealth-building method for beginners.

## US Broad-Market Index ETFs: A Solid Defense Against Inflation


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You might think keeping money in the bank is the safest option. During high inflation, that mindset can cost you dearly.

\* **Holding cash**: Your [purchasing power is eroded every day](https://evolveetfs.com/2022/06/advantages-of-holding-cash-during-market-volatility-inflation/). Money that buys a cup of coffee today may only buy half a cup next year. \* **Investing in the US broad market**: Historical data shows that when inflation is moderate (averaging below 3%) and rising, US stocks beat inflation [90% of the time](https://www.hartfordfunds.com/insights/market-perspectives/equity/which-equity-sectors-can-combat-higher-inflation.html).

While stock performance can be unpredictable in the short term during high inflation, over the long run, putting money into growth assets is the smart way to protect your wealth. US broad-market index ETFs are an outstanding recommendation precisely because they offer three rock-solid advantages.

### Ride the Growth Train of Global Leading Companies

Investing in a broad-market index ETF that tracks the S&P 500 means you instantly become a shareholder in hundreds of the world’s best companies. You are no longer just a consumer — you are a participant and beneficiary of their growth.

The iPhone you use every day, the Windows operating system on your computer, the Amazon website you shop on — the companies behind them ([Apple](https://www.biyapay.com/en/stock/AAPL), Microsoft, Amazon) are all S&P 500 constituents. These companies are not just huge; they have powerful business models that drive continuous profit growth.

| Company | Business Model Strength | How It Makes Money for You | | --------- | ----------------------------------------------------------- | --------------------------------------------------- | | Apple | Closed ecosystem, high brand loyalty | High-margin hardware and recurring services revenue | | Microsoft | Shift to cloud (Azure) + subscription software (Office 365) | Stable recurring revenue and predictable cash flow | | Amazon | E-commerce platform + high-margin cloud (AWS) | AWS’s massive profits offset thin retail margins | | Nvidia | Dominant leader in AI chips | Captures explosive demand for critical technology |

> Their success is no accident. They know how to transform — from PC software giants to cloud-first leaders, from online bookstores to everything-store tech behemoths. Investing in an S&P 500 ETF means betting on their innovation and future value — essentially boarding the fastest train of human progress.

Additionally, America’s ongoing demographic dividend provides long-term economic support. Unlike many developed countries facing aging and shrinking populations, the US benefits from [continuous immigration](https://www.pgpf.org/programs-and-projects/convening-experts/us-2050/research-summary/), injecting vitality into the labor market. This momentum will continue to support long-term corporate growth and solidify the foundation of your investment.

### Enjoy Ultra-Low Costs and Maximum Diversification

If you tried to buy all 500 S&P 500 [stocks](https://www.biyapay.com/en/stock) individually, you would need enormous capital and face prohibitive transaction costs. Index ETFs have completely changed that.

**1. Ultimate Risk Diversification**

Don’t put all your eggs in one basket — you already know this principle. The biggest risk of individual stocks is “single-company risk” — if that company fails, your investment can go to zero.

| Investment Type | Diversification Level | Risk Level | | ------------------------- | --------------------------------------------- | -------------------------------------------------- | | US Broad-Market Index ETF | High — one trade owns hundreds of companies | Lower — poor performance of one company is diluted | | Single Company Stock | Low — all capital concentrated in one company | Extremely high — company fate determines returns |

Index ETFs hold hundreds of securities, dramatically reducing unsystematic risk. Even if a few companies underperform, growth from the rest offsets losses, keeping your portfolio growing steadily. This is the core reason we rank these products as our top US stock recommendation.

**2. Shockingly Low Management Costs**

Active funds are run by managers who charge higher fees. Yet data shows that over the long term, most active funds fail to beat the market. Index ETFs are passive tools that simply track an index, so management costs are minimal.

| Product Type | Average Expense Ratio (2024) | | ------------------- | ---------------------------- | | Index ETFs | 0.48% | | Active ETFs | 0.69% | | Active Mutual Funds | 0.89% |

> **Lower fees mean more returns stay in your pocket.** Saving 0.5%–1% per year seems small, but compounded over decades the difference becomes enormous.

### Historical Returns Prove Their Inflation-Fighting Power

Talk is cheap — let’s look at the data. The S&P 500 has survived the Great Depression, two world wars, oil crises, the dot-com bubble, and countless other tests since 1926.

Its long-term annualized return is approximately **10%**.

Even after adjusting for inflation, the real annualized return is [**7.0%**](https://www.dimensional.com/us-en/insights/will-inflation-hurt-stock-returns-not-necessarily). This means your wealth grows far faster than inflation erodes it over time. Markets in Taiwan or Europe rarely match this long-term performance.

> This is why we say that when facing short-term market volatility, what you need is not panic but patience. History has repeatedly proven that as long as you hold for the long term, the growth curve of the US broad market will smooth out the bumps and carry you to financial abundance.

In summary, thanks to world-class companies, rock-bottom costs, and historically validated strong returns, US broad-market index ETFs are undoubtedly the most trustworthy safe haven when fighting inflation anxiety.

## Take Action Now: Build Your US Broad-Market ETF Portfolio


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Knowledge brings peace of mind, but only action changes your financial future. Now let’s turn the plan into reality step by step and build your inflation-resistant assets.

### Beginner US Stock Recommendations: Popular S&P 500 ETFs

When you decide to invest in an S&P 500-tracking ETF, you’ll find several popular choices, the most well-known being [SPY, IVV, and VOO](https://capital.com/en-int/analysis/spy-ivv-and-voo-be-careful-not-all-s-p-500-etfs-are-the-same). They all track the same index and deliver [nearly identical long-term returns](https://drwealth.com/spy-vs-voo-vs-ivv/), but differ in details that directly affect long-term costs.

| ETF Ticker | Issuer | Expense Ratio | Key Advantages & Best Use | | ---------- | ------------ | ------------- | ------------------------------------------------------------ | | SPY | State Street | 0.0945% | Highest liquidity — ideal for frequent traders & options | | IVV | BlackRock | 0.03% | Tax-efficient, favorable dividend reinvestment for long-term holders | | VOO | Vanguard | 0.03% | Lowest cost — attracts massive long-term investor inflows |

For long-term investors, the **expense ratio** is the number to watch. A 0.06% difference seems tiny but compounds significantly.

Example with $100,000 invested:

\* **SPY**: ~[**$94.5/year**](https://www.mezzi.com/blog/spy-vs-voo-fees-liquidity-dividend-treatment-and-tracking-differences.) in fees \* **VOO or IVV**: only **$30/year**

> For buy-and-hold investors, VOO and IVV are clearly the more cost-effective choices. Their ultra-low fees ensure more profit stays with you and maximize compounding. This is why they are our top US stock recommendations.

### Two Ways to Start Your Investment Journey

After choosing your ETF, the next step is opening an account. Taiwanese investors mainly have two options to buy US index ETFs:

1. [**Local broker complex order (複委託)**](https://www.ultimamarkets.com/academy/how-to-buy-us-stocks-complete-guide-for-beginners-10-rules-3-basics-and-stock-selection-tips/): Place orders through your familiar Taiwanese broker, who executes trades in the US market for you. 2. **Overseas broker**: Open an account directly with a US online broker and handle everything yourself.

Each method has pros and cons — choose based on your needs.

| Channel | Advantages | Disadvantages | | ------------------- | ------------------------------------------------------------ | ------------------------------------------------------------ | | Local Complex Order | ✅ Full Chinese interface & support

✅ No need to remit funds abroad

✅ Actual stock ownership with shareholder rights | ❌ Higher trading costs (commissions, minimums)

❌ Slower execution

❌ Fewer available products | | Overseas Broker | ✅ Extremely low or zero-commission on many ETFs

✅ Huge product selection

✅ Flexible & powerful platform | ❌ Need to handle international wire transfers (fee ~$30-40)

❌ English interface

❌ Support across time zones |

If you go with an overseas broker, the real friction is often not “which ETF to buy,” but how to estimate funding and FX costs before you move money. You can start by using BiyaPay’s [FX rate converter & comparison](https://www.biyapay.com/en/converter) to sanity-check the rate and your cost range, then plan funding cadence with [remittance](https://www.biyapay.com/en/sendmoney) so you’re not surprised by fees or rate slippage after the transfer.

Once the money path is stable, shift back to investing discipline: keep one ETF watchlist and one review routine to avoid jumping tickers based on headlines; when you need to verify constituents or related large-cap names, BiyaPay’s [stock info lookup](https://www.biyapay.com/en/stock) helps you cross-check quickly. To connect the steps, enter via [registration](https://www.biyapay.com/en/register) or the [official site](https://www.biyapay.com/en); BiyaPay operates on the basis of multi-jurisdiction registration references (e.g., U.S. MSB status and New Zealand FSP registration), which fits a process where “funding logistics” and “trade execution” are reviewed with the same risk checklist.

> **How to choose?**

> \* **If you’re a beginner** and want everything in Chinese and don’t mind higher fees for convenience, start with **local complex order**. > \* **If you’re committed long-term**, willing to learn, and want minimum cost and maximum functionality, **open an overseas broker account**. The initial wire fee is quickly offset by years of lower trading costs.

Opening an overseas brokerage account is simpler than you think — usually fully online:

1. Choose a broker and [fill out the online application](https://international.schwab.com/us-investing-brokerage-account) (personal, financial, employment info). 2. Upload ID (passport) and proof of address (utility bill). 3. Complete the W-8BEN form (non-US resident tax status — qualifies you for lower dividend withholding tax). 4. Wire funds from your bank to the brokerage account and start trading.

### Build the Right Long-Term Investing Mindset

Tools and accounts are ready, but your ultimate success depends on your **mindset**. Remember these three principles — they are your anchor through market storms.

**Principle 1: Embrace Discipline, Abandon Market Timing**

Many try to “buy low, sell high,” but [historical data](https://www.hartfordfunds.com/practice-management/client-conversations/managing-volatility/top-10-stock-market-drops-recoveries.html) repeatedly proves timing is futile. [Vanguard research shows](https://www.daviscapitalsite.com/timing-the-market/) that 70% of annual market returns can come from just a handful of days. Missing those days devastates long-term returns.

Instead of guessing, adopt [**dollar-cost averaging**](https://www.nasdaq.com/articles/etfs-dollar-cost-averaging-simple-strategy-long-term-investing).

> **What is dollar-cost averaging?** It’s automated investment discipline. You set a fixed amount (e.g., $300) to invest on a fixed date (e.g., the 5th of each month) regardless of price.

> \* When prices are low → you buy more shares. > \* When prices are high → you buy fewer shares.

> Over time, this [lowers your average cost](https://www.stockgeist.ai/etfs-dollar-cost-averaging/) and removes emotional decisions driven by fear or greed. It is extremely effective for long-term wealth building and the best beginner US stock strategy.

**Principle 2: Treat Market Declines as Gifts, Not Disasters**

When headlines scream “crash” or “bear market,” fear is natural. But as a long-term investor, train yourself to see downturns differently. Every dip means you can buy more high-quality assets at cheaper prices.

Historical data makes this clear:

From the chart, whether it was Black Monday 1987, the 2008 financial crisis, or the 2020 COVID crash, strong rebounds and rich rewards followed sharp declines. As long as you stay invested, history shows that [no 20-year period in the S&P 500 has ever lost money](https://nemesrush.com/staying-the-course-long-term-investing-during-market-volatility/).

> **Patience is your strongest weapon.** When others sell in fear, that’s your best time to accumulate via dollar-cost averaging.

**Principle 3: Never, Ever Use Leverage**

This must be said with utmost seriousness. Leverage (borrowed money) is a double-edged sword that magnifies gains — but magnifies losses even more disproportionately.

> **Risk Warning**: When using leverage, brokers can [**force-liquidate your positions**](https://www.investorlawyers.com/what-are-the-risks-of-using-leverage.html) if your account value falls below a certain level to recover the money they lent you. This is called a “[margin call](https://www.returnstacked.com/the-risks-of-leverage/)” and can happen in a single violent move, leaving you no chance to wait for recovery.

> Even a modest market drop can be catastrophic for a leveraged account. The 2022 UK gilt crisis is a brutal example — leverage triggered a death spiral that instantly bankrupted institutions. Remember: steady wealth comes from time and compounding, not gambling.

Facing rising prices, stop worrying and start acting. The core message of this article is simple: consistently dollar-cost averaging into US broad-market index ETFs is the most effective way to build a solid financial defense. [Time is your most valuable asset](https://www.schwab.com/learn/story/power-long-term-compound-interest-investments), [the power of compounding](https://us.etrade.com/knowledge/library/getting-started/compound-interest-explained) lets every dollar work for you, [earning interest on interest](https://www.fidelity.com/learning-center/trading-investing/compound-interest).

> Don’t let inflation anxiety erode your future. Start today — let your money work for you and sail safely through this inflation storm.

## FAQ

### The US market is at all-time highs — is it still okay to invest now?

Absolutely. For long-term investors, the best time to start is “now.” Use **dollar-cost averaging** to invest regularly. This buys less when prices are high and more when prices are low, naturally lowering your average cost without worrying about entering at the peak.

### Do I need a lot of money to invest in US broad-market ETFs?

Not at all! This is the beauty of index ETFs. You can start with as little as a few dozen dollars through most brokers. The key is to **start** and **keep investing consistently** — not the initial amount. Your wealth will grow gradually over time.

### Will I have to pay a lot of tax on US ETF profits?

Good news for Taiwanese investors: capital gains from selling stocks are **tax-free**. The only tax is the 30% withholding on dividends, which the broker automatically deducts — very simple.

### Are US broad-market index ETFs completely risk-free?

No investment is risk-free. The biggest risk with broad-market ETFs is short-term market volatility. But history shows that if you hold for 10+ years, the probability of loss is extremely low. Your biggest enemy is not the market — it’s selling in panic.