Defensive Sector ETFs Still Leading in 2011

August 17th at 1:54pm by John Spence

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]

Source: Russell Investments

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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