Tariff Threats Become Reality, Add 6 ETFs To Your Arsenal

Vanguard Dividend Appreciation ETF (VIG - Free Report)

The dividend-paying securities are the major sources of consistent income for investors when returns from the equity market are at risk. This is especially true as these stocks offer the best of both these worlds — safety in the form of payouts and stability in the form of mature companies that are less volatile to large swings in stock prices. The companies that offer dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. While the dividend space is crowded, ETFs with stocks having a strong history of dividend growth like VIG seem to be good picks. The fund added 0.9% over the past week.

ProShares UltraShort MSCI EAFE (EFU  - Free Report)

For investors seeking to make an outright bet against the global stocks, an inverse ETF could be the way to go. EFU offers two times (200%) the inverse (opposite) of the daily performance of the MSCI EAFE Index. The ETF gained nearly 9% in the past one month. While the strategy is highly beneficial for short-term traders, it could lead to huge losses compared with traditional funds in fluctuating or seesaw markets. Further, their performances could vary significantly from the actual performance of their underlying index over a longer period when compared to the shorter period (such as weeks or months) due to their compounding effect.

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