These three industries also have the lowest beta relative to the S&P over the past five years, according to Stovall. Lower beta means the sectors were less volatile than the overall S&P 500. ETFs tracking these defensive sectors include Consumer Staples Select Sector SPDR Fund (NYSEArca: XLP), Utilities Select Sector SDPR Fund (NYSEArca: XLU) and Health Care Select Sector SPDR Fund (NYSEArca: XLV).
“Looking at volatility from a different perspective, we see that within the S&P 500, the stocks that pay a dividend recorded less of an average year-to-date decline than those that paid no dividend,” the strategist added in a report Monday. Dividend payers also had a lower beta than non-payers. [Dividend ETFs See Rapid Growth]
SPDR S&P Dividend ETF (NYSEArca: SDY)