This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 ETFs for Riding Out the Stock Market Storm

NEW YORK (Fabian Capital Management) -- Investors who are concerned about the recent volatility in the stock market may want to consider looking at conservative equity strategies to protect their assets. There are a number of exchange-traded funds that have proven to be dual-purpose vehicles for steady capital appreciation and income despite the turmoil in high-beta sectors.

Rather than completely pulling back your portfolio exposure to fixed-income or cash, you can reposition your equity sleeve to more defensive areas that still offer compelling growth opportunities.

One under-the-radar ETF that has had a very strong start to the year is the Guggenheim Defensive Equity ETF (DEF). This ETF is made up of 100 global stocks that constitute the Sabrient Defensive Equity Index, which provides exposure to market sectors that have historically performed well in down markets.

So far this year, DEF has gained 6.3% and recently hit a new all-time high this week. It's also worth noting that DEF has gained in every subsequent year since 2008, when it lost 30%. Currently this fund has more than $130 million positioned in energy, utilities and telecommunications, which combined make up more than 55% of the total portfolio.

One of the things I like about DEF is that the underlying holdings are well diversified to help weather volatility while still providing plentiful opportunity for capital appreciation in an up market. The net expense ratio of this ETF is currently listed at 0.65%.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $127.60 2.28%
FB $83.09 2.87%
GOOG $535.38 2.16%
TSLA $205.27 -0.74%
YHOO $44.66 0.46%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs