Related: What Type of Factors to Look for in U.S. Stock ETFs

“Defensive stocks, such as health care, tend to outperform when investors anticipate a slowdown in economic activity. These stocks are often used as a safe haven for investors during a downturn,” according to CNBC.

Through the first two months of the third quarter, investors added $1.41 billion to XLV, good for one of the best totals among all sector ETFs.

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