When preparing for a recession, it’s important to consider investing in exchange-traded funds (ETFs) that can help protect your portfolio. Here are 9 top ETFs to consider during a recession:
1. SPDR Gold Shares (GLD): Gold is often seen as a safe-haven asset during times of economic uncertainty, making this ETF a popular choice for investors looking to hedge against market downturns.
2. iShares 20+ Year Treasury Bond ETF (TLT): Treasury bonds are considered one of the safest investments available, making this ETF a good option for those seeking stability during a recession.
3. Vanguard Dividend Appreciation ETF (VIG): This ETF focuses on companies with a history of consistently growing dividends, providing investors with a source of income even when stock prices are falling.
4. iShares Edge MSCI Minimum Volatility USA ETF (USMV): This ETF is designed to minimize volatility by investing in stocks with lower risk profiles, making it a solid choice for investors looking to reduce their exposure to market fluctuations.
5. Utilities Select Sector SPDR Fund (XLU): Utilities are typically considered defensive stocks that can perform well during economic downturns, making this ETF a good option for investors seeking stability.
6. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD): Corporate bonds are another safe-haven asset that can help protect your portfolio during a recession, making this ETF a valuable addition to your investment strategy.
7. Consumer Staples Select Sector SPDR Fund (XLP): Consumer staples are products that people need regardless of the state of the economy, making this ETF a reliable choice for investors looking for stability during a recession.
8. iShares Edge MSCI USA Quality Factor ETF (QUAL): This ETF focuses on high-quality companies with strong fundamentals, making it a good option for investors seeking to minimize risk during a recession.
9. iShares Edge MSCI USA Value Factor ETF (VLUE): Value stocks tend to outperform during economic downturns, making this ETF a valuable addition to your portfolio when preparing for a recession.
By investing in these 9 ETFs, you can help protect your portfolio and potentially even profit during a recession. Remember to consult with a financial advisor before making any investment decisions to ensure they align with your financial goals and risk tolerance.