Protect Your ETF Portfolio | ETF Trends

In unsteady market times such as these, exchange traded fund (ETF) investors tend to seek safer investment options. Many look to bond ETFs for security. "Megacap" stocks within ETFs also tend to be stable, as they are more established and usually weather hard times easier than say a small-cap company. Health care and consumer-focused ETFs have held up well lately because they aren’t highly correlated to economic trends.

In addition to these, Gary Gordon for ETF Expert adds iShares S&P Global Industrials (EXI) that comprises 150 well-known industrials, 50% of which are in the U.S. and the other 50% are scattered throughout other parts of the world. Investing in more established companies worldwide tends to provide a layer of diversification and protection in market corrections.

In today’s global economy and with so many ETF choices in different market segments, there can be opportunities for investors to find areas that are trending in the right direction.  In good times and in bad, it’s always a safe strategy to set stop-losses, and stick to an investment plan.

The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.