In times of economic uncertainty, it’s important to consider investing in exchange-traded funds (ETFs) that can help protect your portfolio during a recession. Here are 9 top ETFs to consider buying during a downturn:
1. SPDR Gold Shares (GLD): Gold is often seen as a safe-haven asset during times of economic turmoil, making GLD a popular choice for investors looking to hedge against market volatility.
2. iShares 20+ Year Treasury Bond ETF (TLT): Treasury bonds are considered one of the safest investments during a recession, and TLT provides exposure to long-term U.S. government bonds.
3. Vanguard Dividend Appreciation ETF (VIG): This ETF focuses on companies with a strong history of increasing dividends, providing investors with income stability during uncertain times.
4. iShares Edge MSCI Minimum Volatility USA ETF (USMV): USMV invests in U.S. stocks with lower volatility, making it a good option for investors looking to reduce risk in their portfolios.
5. Utilities Select Sector SPDR Fund (XLU): Utilities are known for their stable earnings and dividends, making XLU a defensive play during a recession.
6. iShares Edge MSCI USA Quality Factor ETF (QUAL): QUAL invests in high-quality U.S. stocks with strong fundamentals, providing investors with exposure to companies that are better positioned to weather a downturn.
7. SPDR S&P 500 ETF Trust (SPY): While the S&P 500 can be volatile during a recession, SPY offers broad exposure to the U.S. stock market and can be a good long-term investment.
8. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD): LQD provides exposure to investment-grade corporate bonds, which tend to be less risky than lower-rated bonds during a recession.
9. Consumer Staples Select Sector SPDR Fund (XLP): Consumer staples companies tend to be more resilient during economic downturns, making XLP a defensive play for investors.
When considering investing in ETFs during a recession, it’s important to do your research and consult with a financial advisor to make sure you’re making the best decisions for your portfolio.