Looking to Recession-Proof Your Portfolio? Consider This ETF
The Vanguard Consumer Staples ETF and the Invesco Food & Beverage ETF are built to weather recessions, but one is the better choice.
Overview
Comparing the Vanguard Consumer Staples ETF (NYSEMKT:VDC) and Invesco Food & Beverage ETF (NYSEMKT:PBJ) highlights a choice between a broad, low-cost defensive basket and a more concentrated, niche focus on food and agriculture.
Both funds provide exposure to defensive sectors that typically hold up when economic growth slows. These investments focus on businesses that produce goods people buy regardless of the financial climate. While the Invesco fund targets a specific niche within food production, the Vanguard fund offers a wider net across the consumer staples landscape.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.