July 29, 2022, 2:57 p.m. EDT

ALERT: 2 ETFs to Hold in a U.S. Recession

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)
  • X
    Vanguard Consumer Staples ETF (VDC)

or Cancel Already have a watchlist? Log In

Jul 29, 2022 (Baystreet.ca via COMTEX) -- Experts and analysts have warned of a looming recession as North American economies have wrestled with soaring inflation and a tight labour market. The United States economy posted its second straight quarter of GDP decline this week. Today, I want to look at two exchange-traded funds (ETFs) that are worth targeting as the odds of a recession increases steadily.

Stocks and bonds have been hit hard by volatility in recent months. That makes cash one of the few safe havens investors can turn to in an uncertain economic climate. The SPDR Bloomberg 1-3 Month T-Bill ETF /zigman2/quotes/209499658/composite BIL -0.0055% seeks to provide exposure to zero coupon U.S. Treasury securities that have a remaining maturity of 1-3 months. This fund is focused on short term fixed income which is typically exposed to less fluctuations. Shares of this ETF have been largely flat in the year-to-date period as of mid-afternoon trading on July 29.

Vanguard Consumer Staples ETF /zigman2/quotes/204569793/composite VDC -1.37% is another ETF that is worth targeting in the event of a recession. This fund offers investors exposure to stocks in the consumer staples sector. Consumer staples are resilient in even rough economic conditions as they sell essential products. Shares of this ETF have dropped 4.2% in 2022.

Some of the top holdings in this ETF include consumer staples giants like Procter & Gamble, Coca-Cola, and Costco Wholesale. This is an ETF you can trust in a recession.


Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

US : U.S.: NYSE Arca
$ 91.45
-0.0050 -0.0055%
Volume: 1.32M
Oct. 5, 2022 11:07a
US : U.S.: NYSE Arca
$ 175.34
-2.44 -1.37%
Volume: 43,674
Oct. 5, 2022 11:07a

This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.