Published on 27 Mar 2024 on Insider Monkey via Yahoo Finance
14 Best Defensive ETFs To Buy For Plunging Markets
In this article, we discuss 14 best defensive ETFs to buy. If you want to skip our discussion on the consumer defensive industry, head over to 5 Best Defensive ETFs To Buy For Plunging Markets.
In January 2024, Goldman Sachs strategists classified small-caps and consumer staples stocks as potential areas of value in the current US stock market. The strategists observed that the market rally has gone beyond mega-cap stocks, and they suggested three trades that offer value in this highly-valued market. First are small caps, represented by the Russell 2000, which now trade below their 10-year average price-to-book ratio. The strategists expect a potential return of roughly 15% for the Russell 2000 in the next 12 months. Secondly, Goldman Sachs strategists favor stocks with weak pricing power, which could benefit from improving profit margins in a solid economic growth environment. Lastly, consumer staples shares are seen as offering attractive valuations, particularly as concerns about higher costs and new weight-loss drugs' impact on consumer behavior show signs of stabilizing. The investment firm added that “pessimism around the Consumer Staples earnings outlook has also shown signs of bottoming”.
See Also: Investing in Innovation: 10 Best Tech and Disruptive ETFs