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Investors rush into defensive sectors as market tumbling

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Movers and Shakers wrote a column · May 10, 2022 05:31
The most punishing market selloff in years showed no signs of abating the week. On Monday, the main Indexs slid to a new low in 2022 , with $Nasdaq Composite Index (.IXIC.US)$ down 25.71% YTD, which eased all the gain from 2021.
Jittery investors are pouring money into defensive sectors, seeking safety in a market that continues to be whipsawed by worries about rising interest rates and the possibility of an economic downturn.
Money flows into defensive areas related to consumer staples, healthcare, utilities, and real estate—meanwhile, assets in precious metals, Treasurys, and commodities. According to Morningstar, defensive-related ETFs have totaled $50 billion inflow at the end of April, which already exceeds the $42 billion net inflow for all 2021 and may top the peak of $75 billion in 2020.
Investors want safety, they want security, and they want to go somewhere where they feel like their money is going to be a little more protected, even in a turbulent environment.”
-- said Ryan Jackson, manager research analyst of passive funds at Morningstar.
Source: WSJ
Source: WSJ
ETFs in the consumer staples and healthcare groups have seen some of the biggest inflows of late. The staples, healthcare, utilities and real-estate sectors are considered safety plays because consumers tend to pay for food, hospital bills, electricity and rent before discretionary purchases.
--- According to WSJ.
The utilities and consumer staples segments are the best performers in the S&P 500 this year, with $Utilities Select Sector SPDR Fund (XLU.US)$ up 0.8% and $Consumer Staples Select Sector SPDR Fund (XLP.US)$ off 0.09%, respectively. The tech sector $The Technology Select Sector SPDR® Fund (XLK.US)$ has dropped 22.1%, that led by the major tech stocks like $Netflix (NFLX.US)$, $Meta Platforms (FB.US)$, $Alphabet-C (GOOG.US)$.
Source: WSJ
Source: WSJ
Let's check out the top-performing stocks in defensive sectors.
Investors rush into defensive sectors as market tumbling
Disclamier: Investing involves risk and the potential to lose principal. Past performance does not guarantee future results. This is for information and illustrative purposes only. It should not be relied on as advice or recommendation.
Source: WSJ
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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