3 ETFs To Protect Your Portfolio

Holding 57 securities, the product is heavily concentrated in its top 10 holdings with Johnson & Johnson (12.76%) and Pfizer (9.94%) dominating the fund’s return. This is a large cap centric fund. Pharmaceuticals take the top spot at 45.26%, while biotechnology (18.87%), equipment and supplies (15.71%), and providers and services (15.51%) round off to the next three spots.

The fund added 4% over the past month and is up 34% year-to-date. The ETF currently has Zacks ETF rank of 2 or ‘Buy’ rating with a ‘Low’ risk outlook.

Guggenheim S&P Equal Weight Consumer Staples ETF (NYSEARCA:RHS)

The consumer staples sector appears to be defensive as it includes a variety of items like food & beverages, non-durable household goods, hypermarkets and consumer supercenters that are essential for daily needs. These products see steady demand even during an economic downturn due to their low level of correlation with economic cycles.

One great way to play this sector is the RHS. This fund tracks the S&P Equal Weight Consumer Staples Index, which means that the fund gives every stock the same weight in the benchmark, irrespective of market capitalization levels (read: Overweight These Equal Weight ETFs in Your Portfolio).

The product offers a radically different approach to the space, as no one firm accounts for more than 3.08% of assets. Though the fund focuses more on large caps at 80%, it provides a nice mix of growth, value and blend securities. In terms of industrial exposure, the ETF has a slight tilt toward food products with 31.71% share, closely followed by beverages (22.44%) and food & staples retailing (20.68%).

This technique hasn’t caught on too much in the staples market, as the ETF has just $79.3 million in assets and sees about 12,000 shares in volume a day. The expense ratio is a little high at 50 basis points a year. RHS added over 5% over the trailing one month and is up nearly 29% so far this year. The fund has a Zacks ETF Rank of 2 or ‘Buy’ rating with a ‘Medium’ risk outlook.

This article is brought to you courtesy of Eric Dutram.

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