Stable, Defensive Sector ETFs for a Wobbly Market

Consequently, if investors still want market exposure, they may look to defensive sector ETF plays. To gain broad utilities sector exposure, investors can look to the Utilities Select Sector SPDR (NYSEArca: XLU), Vanguard Utilities ETF (NYSEARCA: VPU), Fidelity MSCI Utilities Index ETF (NYSEARCA: FUTY), iShares U.S. Utilities ETF (NYSEArca: IDU) and Reaves Utilities ETF (NYSEArca: UTES).

Goldman argued that utilities have historically shown a “track record of notable outperformance during decelerating GDP growth environments and a low historical beta to S&P 500.”

American will still need healthcare services, regardless of how the economy is doing. Investors can also capitalize on this all-weather trait through healthcare-related ETFs, such as Health Care Select Sector SPDR ETF (NYSEArca: XLV), Vanguard Health Care ETF (NYSEArca: VHT) and iShares US Healthcare ETF (NYSEArca: IYH).

Additionally, consumers will still require the necessary daily goods, so investors can look to consumer staples ETFs like the Consumer Staples Select Sector SPDR ETF (NYSEArca: XLP)Fidelity MSCI Consumer Staples ETF (NYSEArca: FSTA) and Vanguard Consumer Staples ETF (NYSEArca: VDC).

For more information on the market sectors, visit our sector ETFs category.