3 Of My Defensive ETFs Just Hit 52 Week High!

🌟🌟🌟On Tuesday the Volatility Index VIX spiked at least 30% to kickstart September on a wobbly note but fortunately it is not doom and gloom for my portfolio.    I was notified by my Tiger App Market Monitor that 3 of my Defensive ETFs have just hit a 52 week high.

Of the 3, $Consumer Staples Select Sector SPDR Fund(XLP)$  has risen by 12%.  XLP seeks exposure to companies whose businesses include consumer staples distribution and retail, household products, food products, beverages, tobacco and personal care products in the US.  These companies are the best and strongest US consumer staples giants, taken from the S&P 500 universe. 

The Top 10 holdings include $Procter & Gamble(PG)$  , $Costco(COST)$  , $Wal-Mart(WMT)$  , $Coca-Cola(KO)$  , Philip Morris International, Pepsi, Mondelez, Altria, Colgate Palmolive and Target. 

Total number of holdings is 38.  The expense ratio is a low 0.09%.  Dividends are paid every 3 months.  The current dividend yield is 2.60%.

Performance wise XLP is up 7.4% in the past month and 14.6% year todate.  In 2023, XLP has risen by 16.7%.  If we look back at 5 years ago, XLP has since increased by 35%.

Wall Street Analysts are bullish on XLP with a Target Price of USD 85.41, an upside potential of 2.4%.

I have invested in XLP since 2022 as I believe that XLP will be a steady and reliable ETF.  The Consumer Staples Sector is impervious to economic cycles as its holdings provide products that are essential to our daily lives.  I also like the excellent dividends which is great source of passive income while waiting for capital growth. 

$SPDR Portfolio S&P 500 High Dividend ETF(SPYD)$ has a laser focus to provide a high level of dividend income and the opportunity for capital appreciation.  SPYD is designed to measure the performance of the top 80 high dividend yielding companies within the S&P500 Index based on Dividend yield. 

The Top 10 holdings include Kellanova, Kenvue, Ventas, Stanley Black & Decker, Public Storage, Best Buy, Edison International, Mid America Apartment  and Hasbro Inc. 

Total number of holdings is 80.  The expense ratio is a low 0.07%.  Dividends are paid every 3 months.  The current dividend yield is 4.08%.  

Many of SPYD are well established companies with strong fundamentals.  Take for example Kellanova.  We may not be familiar with the name Kellanova but we certainly know the name Kellogg's which has been around for over 117 years.   Kellanova had 2023 Net Sales of more than USD 13 billion with a global presence in 180 markets. 

Performance wise SPYD is up 7.4% in the past month and is up 13.3% year todate.  In 2023 SPYD has risen by 21.8%.

I have invested in SPYD since 2022 and have enjoyed the nice and juicy dividends that it generates.   I am happy with its 19% capital growth as  I believe that SPYD strikes a great balance of providing me with a regular income as well as capital growth potential.  

$Fidelity MSCI Utilities Index ETF(FUTY)$ is one of my newest defensive ETFs as I have just started to invest in FUTY only 2 months ago.    In that short period of time FUTY has risen by 7.8% in my portfolio. 

FUTY tracks the performance of the best US utilities companies with the MSCI USA IMI Utilities 25/50 Index.  Why is Utilities Segment which is often thought of as dividend paying stalwarts become so exciting? 

According to Goldman Sachs, the Utilities Sector has become a derivative AI play.  The rise of AI is expected to contribute to a substantial increase in power usage over the next decade.  This could meaningfully drive electricity producers' businesses. 

Despite this the Utilities Sector still retain its defensive qualities as people still need electricity even in challenging economic environments. 

The Top 10 holdings of FUTY include Next Era Energy, Southern Company, Duke Energy, Constellation Energy, American Electric Power, Sempra, Dominion Energy, Public Service Enterprise, PG&E Corporation, Exelon Corporation and Consolidated Edison. 

Top 10 weightage is 54%.  Total number of holdings is 67.  The expense ratio is 0.08%.  Dividends are paid quarterly.  The current dividend yield is 2.9%.

All 3 ETFs are going ex dividend in September.  Of the 3 ETFs, I am most excited by FUTY as it has the greatest upside potential with the sector's mix of AI exposure and defensiveness.

So even though the markets are currently in the doldrums, I have something to cheer as my 3 defensive ETFs have hit their 52 week high and dividends are on the way. 

When the markets are volatile, Defensive ETFs are the bright sparks in my portfolio. 

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