Some suggest using consumer staples funds as a defensive strategy in these volatile times, since much of the cutting back is more likely to hit discretionary items before it affects the sales of those items we need simply to live. As long as these funds are above their trend lines, they may be worth considering if they’re right for you.
Retail ETFs are down so far today in trading, including:
- iShares Dow Jones US Consumer Goods (IYK), down 3.7% year-to-date
- SPDR S&P Retail (XRT), up 0.7% year-to-date
- Rydex S&P Equal Weight Consumer Staples (RHS), down 2.5% year-to-date
Read the disclosure, as Tom Lydon is a board member of Rydex Funds.