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.
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