They’re aiming to steady your returns

Article Excerpt

Traditionally, the price of most stocks, and the ETFs that hold them, drop during bear markets such as the one we’re now in. However, certain segments generally perform better than the overall market during extended downturns, including the 2000-2002 and 2008-2009 bear markets. Below, we highlight two ETFs focused on firms that produce and sell consumer staples. They should, as in past downturns, bounce back faster than most other market groups. The supplement on pages 49 and 50 provide more information on the extent and duration of typical bear markets, as well as the performance of the various sectors during prolonged and deep downturns. VANGUARD CONSUMER STAPLES ETF $145.62 (New York symbol VDC; TSINetwork ETF Rating: Aggressive; Market cap: $5.3 billion) lets you invest in small, medium and large U.S. companies whose products are considered non-discretionary. These companies are generally less sensitive to economic cycles, and include direct-to-consumer manufacturers and distributors of food, beverages and tobacco. Producers of household goods and personal products, along with…