Top defense ETFs

Defense ETFs (exchange-traded funds) are the best investment vehicle for many investors. Their purchase allows you to acquire valuable assets of various companies and minimize the risks of an instant loss of invested funds. You must look at the best defense ETFs to find the correct fund. They have several noticeable advantages that every investor will experience.

What are defense ETFs?

The Defense ETF is an exchange-traded fund. Its purchase makes it possible to receive a whole portfolio of various assets, ranging from company shares to precious metals or energy resources. The variety of assets acquired excludes the possibility of the complete bankruptcy of the investor. Even if one asset instantly depreciates, the rest will remain at the same level or even increase in price. This method of protecting funds is popular. It is used not only by large but also by small investors.

Buying defense ETFs is always cheaper than building a portfolio of dozens of assets on your own. This has a positive effect on the investor’s financial condition and gives him the opportunity to acquire more shares of various companies and enterprises, as well as other valuables. An essential feature of defense ETFs is that the portfolio includes assets from different countries. This further reduces the risk of losing all invested funds and makes it close to zero.

Top 5 defense ETFs

The variety of defense ETFs is fantastic. Many available funds make it possible for each investor to choose the best investment option for himself. At the same time, most people still prefer to buy well-known defense ETFs, which are leaders in the popularity rating.

Top 6 defense ETFs:

1. iShares Select Dividend ETF. To protect their investments, investors often purchase dividend stocks. They bring a small but constant income, which is their key advantage. The best in this regard is the iShares Select Dividend ETF. His portfolio is formed from several dozen valuable assets, the value of which is constantly growing. Among them are shares of many large companies such as IBM, Marlboro, and others. All these firms operate in different industries, which further protects the investment. The fund has a high rate of return. According to this indicator, he is far ahead of his closest competitors, which allows him to be among the leaders in the popularity rating.
2. Vanguard Dividend Appreciation. This defensive ETF will be the best option for people who prefer long-term investments. It offers investors a portfolio that includes stocks that have been profitable over the past decade. Such a selection criterion gives confidence that it will be possible to increase your capital in a few years. This fund includes shares of such world giants as Johnson & Johnson, Microsoft, and JP Morgan. There are also securities of lesser-known but profitable companies. The yield of this ETF is relatively high. At the same time, it is planned that this figure will only increase in the future.
3. Invesco S&P 500 Low Volatility ETF. This ETF is unlike any other. It differs from competitors in that it offers a portfolio of more than a hundred stocks characterized by the lowest possible volatility. This feature allows investors to invest their funds without fear of a stock collapse confidently. The portfolio includes securities of small companies. Approximately a quarter of them work in the public services sector. There are also shares in consumer goods manufacturers. All these companies are little dependent on the economic situation, so their securities practically do not change in price for a long time.
4. Invesco S&P 500 High Div Low Volatility. This ETF is characterized by low volatility and a high percentage of dividends simultaneously. This combination is quite rare, so the fund is top-rated. The portfolio of this ETF consists of 50 stocks. All of them are very profitable in terms of paying dividends. In addition, the value of shares rarely makes sharp jerks up or down, which allows you to avoid significant financial losses. A protective fund is ideal for people who invest relatively little money. However, if desired, large investors can also use it.
5. iShares MSCI USA Quality Factor ETF. This protective ETF is rightfully considered one of the most reliable ways to invest money. It provides access to “strong” stocks that withstood various economic crises and practically did not fall in price. This trend will continue in the future, so that this ETF will come in handy for investors. It offers a portfolio of 130 shares of different companies. Among them, there are valuable assets of prominent companies (McDonald’s, Pepsico, and others), which only add to the status of this fund. In addition, they highlight the stable growth of shares (in a favorable economic situation), providing an excellent annual income, and their stability even with strong fluctuations in the market.
6. GraniteShares Gold Trust. This ETF is a priority for those who do not trust stocks and prefer to invest in precious metals. Gold is best suited for these purposes. It is he whom this fund uses as the main asset and not the securities of companies that are engaged in the extraction, processing, and sale of this metal. GraniteShares Gold Trust is attractive because it is one of the most accessible funds. This is because the annual expenses of the investor are less than 0.18% of all invested funds. Such a low rate allows you to minimize losses and gives you a chance to count on a good profit.

Buying defense ETFs is the right way to invest. This way of spending funds makes it possible to obtain a variety of valuable assets, thereby protecting yourself from bankruptcy. To achieve this effect, investing money only in reliable and proven funds is necessary. This will reduce any risks and protect valuable investments.