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.