Back to top

3 Safe ETFs for Volatile Markets

Read MoreHide Full Article

Global stocks recorded their worst decline since the financial crisis, last week. US stocks lost about $3.6 trillion in market value as investors sold risky assets and piled into safe haven assets.

Gold surged to its highest level in seven years, and 10-year Treasury yield dropped to a record low. After an impressive rebound yesterday, stocks are down today again as investors continue to worry whether the virus would have a temporary impact on the global economy, or result in a deep downturn.

The iShares 7-10 Year Treasury Bond ETF (IEF - Free Report) provides exposure to intermediate-term US Treasury bonds.

The SPDR Gold MiniShares Trust (GLDM - Free Report) represents about 1/100th of an ounce of gold. It is a cheaper version of the ultra-popular SPDR Gold Shares ETF (GLD - Free Report) .

The Amplify BlackSwan Growth & Treasury Core ETF (SWAN - Free Report) aims to offer investors exposure to the returns of the S&P 500 while providing protection against market downturns.

Approximately 90% of the ETF is invested in US Treasury securities, and 10% is invested in S&P 500 LEAP in-the-money call options.

The LEAP options provide participation in approximately 70% of the S&P 500 (SPY - Free Report) ’s upside. They could lose all of their value if the S&P 500 falls 10% or more. However, during market downturns, US Treasuries usually act as a buffer and may even increase in value due to investors’ preference for “safe” assets.

To learn more about these ETFs, please watch the short video above.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

Published in