Retirees Are Quietly Using These 3 Consumer Staples ETFs as a Recession Shield

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Retirees are increasingly using Consumer Staples ETFs like State Street Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples Index Fund ETF Shares (VDC), and Fidelity MSCI Consumer Staples Index ETF (FSTA) as a defensive measure. These ETFs feature low beta, meaning they decline less than the broader market during downturns, preserving capital due to the inelastic demand for consumer staple products. However, they significantly underperform in bull markets and should only constitute 10-20% of an equity portfolio.

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