Summary: ETF for consumer staples, healthcare, utilities, and telecommunications sectors—industries that tend to remain stable regardless of market fluctuations.
When looking for ETFs that focus on companies with more downturn-resistant characteristics, you typically seek defensive stocks that can better withstand economic downturns than growth-oriented or cyclical companies. Defensive stocks often belong to consumer staples, healthcare, utilities, and telecommunications sectors—industries that tend to remain stable regardless of market fluctuations. Below are several categories of downturn-resistant ETFs:
- Consumer Staples ETFs tracks companies produce essential goods like food, beverages, household products, and personal care items, which people continue to buy even during recessions. Consumer Staples ETFs: XLP, VDC, and FSTA.
- Healthcare ETFs remain stable during downturns because Healthcare products and services are necessary, regardless of the economic climate. ETFS: XLV, VHT and FHLC.
- Utility ETFs Utility companies (e.g., electricity, water, and gas providers) are often considered recession-proof because people continue to need these services regardless of the economic situation. ETFS: XLU, VPU, FUTY
- Dividend-Paying ETFs Dividend-paying companies are well-established, financially stable, and resilient during downturns. These companies usually have a history of generating consistent cash flows. ETFS: DVY, VIG, FDVV
- Low Volatility ETFs Low-volatility ETFs focus on stocks with lower price fluctuations, providing a smoother ride during market downturns. ETFS: USMV, SPLV, FDLO
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