3 Defensive ETFs for Turbulent Times

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3 Defensive ETFs for Turbulent Times

Guggenheim Defensive Equity ETF (DEF)

guggenheim defensive equity etf stock chart 4.30.14 300x185 3 Defensive ETFs for Turbulent Times
DEF (Click to Enlarge)
One under-the-radar exchange-traded fund 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 6.32% and recently hit a new all-time high this week. It also is worth noting that DEF has gained in every subsequent year since 2008, where it lost 30.42%.  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%.

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