The narrative on Wall Street during the past few months has been one of volatility and uncertainty. The popular momentum trades of the year — including hot emerging markets or the Nikkei/Yen trade — have lost steam in a hurry.
So what’s next as we look for new leadership? Well, it’s hard to tell. It could be U.S. megacaps as the market gets defensive after front-loaded returns. If the global economy rounds the bend, it could be the battered markets of Europe. Or it could be some corner of Wall Street that we aren’t even watching yet.
With such a cloudy outlook, then, it behooves investors to start thinking longer-term and lower-risk. And the easiest way to take on that kind of strategy is to buy diversified ETFs that fit well with the current headlines and that will be resilient against just about anything the market will throw our way.
To help you rebalance your portfolio for the second half of 2013 and beyond, here are five ETFs that investors should consider staking out a position in right now: