7 Best ETFs for Bear Markets & Recessions (Defensive)

7 Best ETFs for Bear Markets & Recessions (Defensive)

Opinions

FUTY (ETF)

Recommended as a top defensive ETF because demand for utilities remains constant during recessions, and the sector provides consistent high dividends.

VDC (ETF)

Recommended as a defensive ETF because demand for consumer staples is non-cyclical and lowly correlated with the broader market.

VGIT (ETF)

Highly recommended as a 'flight to safety' asset and 'go-to diversifier' due to treasury bonds' low correlation to stocks and backing by the US government.

SGOL (ETF)

Recommended as a safe haven asset because gold acts as a store of value and is uncorrelated to both stocks and bonds.

TAIL (ETF)

Presented as a specialized defensive tool that acts as an 'insurance policy' using put options, expected to pay out in a severe crash rather than a minor dip.

JNJ (stock)

Mentioned as a positive example of a defensive consumer staples stock that tends to weather economic storms well.

SH (ETF)

Presented as a way for bearish investors to short the market, as it provides the inverse performance of the S&P 500.

USMV (ETF)

Recommended for allowing investors to stay in stocks while reducing portfolio risk and minimizing drawdowns by targeting low-volatility stocks.

PG (stock)

Mentioned as a positive example of a defensive consumer staples stock that tends to weather economic storms well.

Topics

Defensive Investing for Bear Markets and Recessions

Portfolio Diversification with Uncorrelated Assets

Resilient and 'Crash Proof' Asset Classes

Utilities Sector as a Defensive Play

Consumer Staples Sector Investing

Treasury Bonds as a 'Flight to Safety' Asset

Gold as a Safe Haven Asset

Tail Risk Hedging with Put Options

Low Volatility Stock Investing

Inverse ETFs for Bearish Investors