In the face of recent market moves and economic forecasts, many investors are adjusting their equity exposure through sector-specific strategies.
On the upcoming webcast, Sector Positioning for an Economic Slowdown, Colin Ireland, Head of SPDR Americas Sales Execution and Institutional Strategy, State Street Global Advisors; Robert Forsyth III, Head of SPDR Americas Client Enablement Group, State Street Global Advisors; and Matthew Bartolini, Head of SPDR Americas Sales Execution and Institutional Strategy, State Street Global Advisors will share their current sector views and offer ways to position portfolios, specifically examining defensive sectors through a top-down and bottom-up approach.
For example, the Utilities Select Sector SPDR (NYSEArca: XLU), the largest utilities sector ETF, has been a solid sector-level performer this year while currently offering an impressive dividend yield of almost 3%. The utilities sector has been a go-to defensive sector play in times of uncertainty, given its bond-esque attributes and steady dividend yields that help many weather out a storm. Furthermore, the lower-for-longer yield environment with the Federal Reserve cutting interest rates three times this year has helped strengthen the income-generating play.
As another way to go defensive, investors can focus on the consumer staples segment. Consumer staples are those items that appear in our cupboards and closets, from shaving cream to soda. These items cover many everyday items and consumer goods that will continue to see demand regardless of the economic situation. For investors looking to get involved with this sector, the Consumer Staples Select Sector SPDR ETF (XLP) is one options to gain broad exposure to this defensive play.
Similarly, the SPDR Health Care ETF (XLV), the largest health care ETF by assets, has been another go-to defensive sector play as many will require basic health care services in both good and bad market conditions. Major pharmaceutical and medical devices companies have historically been categorized defensive stocks since there will always be sick people in need of care.
Financial advisors who are interested in learning more about sector strategies can register for the Wednesday, November 13 webcast here.