Morningstar has identified five equity funds that are considered defensive in nature. These funds are designed to weather market downturns and provide stability in uncertain times.
The first fund on the list is the Vanguard Dividend Appreciation Index Fund. This fund invests in companies with a strong track record of increasing dividends, which can provide a source of steady income even when stock prices are falling.
The next fund is the Fidelity Quality Factor ETF. This fund focuses on companies with strong fundamentals and stable earnings growth, which can help protect against market volatility.
The iShares Edge MSCI Minimum Volatility ETF is another defensive option. This fund invests in companies that have historically exhibited lower volatility than the broader market, making it a good choice for investors seeking stability.
The JPMorgan Low Volatility Equity Fund is also recommended for its focus on low-volatility stocks. This fund aims to provide consistent returns with lower risk than the overall market.
Lastly, the T. Rowe Price Dividend Growth Fund is highlighted for its focus on companies with a history of growing dividends. This fund can provide a reliable source of income and potential for capital appreciation.
Overall, these five equity funds offer defensive characteristics that can help investors navigate turbulent market conditions with more confidence.