5 Best-Performing ETFs When Volatility Strikes

In the movie “Top Gun,” Maverick, the hotshot pilot played by Tom Cruise, said of aerial dogfighting, “You don’t have time to think up there. If you think, you’re dead.” Well, investors don’t have to make that type of snap decision making when volatility strikes, but it’s helpful to know which exchange-traded funds (ETF) they can turn to without having to think—too long at least.

When investors are caught in the volatility whipsaw, its helpful to consider the best-performing ETFs. Here are five as cited by CNBC.

1. Utilities Select Sector SPDR (NYSEArca: XLU): seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Utilities Select Sector Index. The index includes securities of companies from the following industries: electric utilities; water utilities; multi-utilities; independent power and renewable electricity producers; and gas utilities.
2. iShares Dow Jones US Real Estate Index Fund (NYSEArca: IYR): seeks to track the investment results of the Dow Jones U.S. Real Estate Index. The underlying fund measures the performance of the real estate sector of the U.S. equity market and may include large-, mid- or small-capitalization companies.
3. iShares 20+ Year Treasury Bond ETF (TLT): seeks to track the investment results of the ICE U.S. Treasury 20+ Year Bond Index (the “underlying index”). The underlying index measures the performance of public obligations of the U.S. Treasury that have a remaining maturity greater than or equal to twenty years.
4. Financial Select Sector SPDR Fund (NYSEArca: XLF): seeks investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Financial Select Sector Index. The index includes securities of companies from the following industries: diversified financial services; insurance; banks; capital markets; mortgage real estate investment trusts (“REITs”); consumer finance; and thrifts and mortgage finance.
5. Health Care Select Sector SPDR ETF (NYSEArca: XLV): seeks investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Health Care Select Sector Index. In seeking to track the performance of the index, the fund employs a replication strategy. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes companies from the following industries: pharmaceuticals; health care equipment & supplies; health care providers & services; biotechnology; life sciences tools & services; and health care technology.

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