Exchange traded funds tracking traditionally defensive sectors such as healthcare, consumer staples and utilities are the best performers so far this year as nervous investors look for more clarity on the economy.
“In the current yo-yo market, where emotion drives investing amid unprecedented volatility, a more disciplined approach may be beneficial,” said Abigail Huffman, director of research at Russell Investments, in a report Wednesday.
The current market environment is favoring defensive sectors and stocks that pay high dividends, she added.
Indeed, some conservative investors are migrating to defensive sector ETFs for consumer staples, healthcare and utilities. [Lower-Risk Stock ETFs to Consider]
Dividend ETFs have been another popular theme in this year’s volatile and uncertain markets while bond yields remain low. [Hunting for Yield with ETFs]