ETFs start at 1:33 if you want to skip the preliminary discussion. Up to you. Do you own any "defensive" assets in your portfolio in preparation for bear markets?
Just looking at this at the end of June 2022, as I was curious about TAIL. TAIL is currently -2.26% YTD which is hugely better than the total stock marked (-20+%). I don't know if that really fits "pays out big in a major crash" though. And given that TAIL is -29% over the past 5 years... ouch.
@@JohnDunkelberg I see TAIL as a tactical and not strategic hold. To have it in a bull-market like we saw up to just about 6 months ago, it was not a positive influence in anyone's portfolio. I added it in January myself, and have since removed it in favor of VTIP for the distributions I can re-invest in equities.
Health Care stocks, value stocks, medicin stocks, REIT, Inverse S&P500 ETF, gold stocks and uranium stocks are my "recession defensive portfolio" right now.
Gave some thought to a 100% equity in retirement using VDC, VHT & VTI (consumer staples, healthcare, total US stock) and just withdrawal from the one doing the best in downturns and rebalance at VTI highs. Issues were they were not immune at times to downturns. Also sectors change over time. Alot of healthcare is biotech & big pharma....would one call that defensive?
Yeah you are right. It can be a mixed bag. Depending on FDA approvals, and legislation regarding prices for meds. All in all it should be something people use like food.. especially with an aging population..I would say that its ups.are not so high and it's lows are not so low, but it is up and down in pharma/health care, also high tech affects..and debt ratios.
I've always thought it's a good idea to have some allocation to intermediate and/or long term treasuries through something like VGIT or VGLT. I can also see the value of a little gold as 'dry powder' during a downturn, even if it's real expected return over the long term is 0, and I believe Hedgfundie mentioned a preference to utilities, but haven't used those myself.
I will take VDC in my Roth over Bonds every single day. Back test a combo of 20% VDC 80% SPY vs 20% BND/ 80% SPY back to 2008 and tell me which one has more downside with a better returns...
Intermediate and long term bond ETFS WILL go down significantly in rising interest rate environments and will have a strong correlation to stocks. Be careful using this as a hedge for stock market drops. VGIT dropped 17% since it's 2020 high and is still down.
...and their yields will rise to compensate over time. Evaluating an interm. or long bond fund over several years makes little sense. "Strong correlation to stocks" is hyperbole and is demonstrably false. Lastly, these bonds have still shot up in every single sudden severe crash in history, including the March 2020 flash crash. Still the closest thing we have to a stock "hedge" outside of put options. The investor with a short horizon shouldn't be buying these in the first place.
@@OptimizedPortfolio The stock Market dropped for most of 2022. Not a crash bit still saw a lot of portfolios lose money. intermediate bonds funds only contributed to those losses, didn't protect against them.
You must have misunderstood. Only 1 of these is an inverse equities ETF, which would move directly opposite the market. The point is that the others would be expected to fall LESS than the market, which I believe is true for all of them YTD, not that they'd be the inverse of it.
ETFs start at 1:33 if you want to skip the preliminary discussion. Up to you. Do you own any "defensive" assets in your portfolio in preparation for bear markets?
Great video and great channel
Thanks!
Great Segment 👏👏
Thanks, Sean!
Great job!
Thanks, Dave!
TAIL has served me well, along with VGLT on days when the market steps in a hole and face-plants.
Just looking at this at the end of June 2022, as I was curious about TAIL. TAIL is currently -2.26% YTD which is hugely better than the total stock marked (-20+%). I don't know if that really fits "pays out big in a major crash" though. And given that TAIL is -29% over the past 5 years... ouch.
@@JohnDunkelberg I see TAIL as a tactical and not strategic hold. To have it in a bull-market like we saw up to just about 6 months ago, it was not a positive influence in anyone's portfolio. I added it in January myself, and have since removed it in favor of VTIP for the distributions I can re-invest in equities.
Thanks for sharing!
Health Care stocks, value stocks, medicin stocks, REIT, Inverse S&P500 ETF, gold stocks and uranium stocks are my "recession defensive portfolio" right now.
Thanks for sharing!
Gave some thought to a 100% equity in retirement using VDC, VHT & VTI (consumer staples, healthcare, total US stock) and just withdrawal from the one doing the best in downturns and rebalance at VTI highs. Issues were they were not immune at times to downturns. Also sectors change over time. Alot of healthcare is biotech & big pharma....would one call that defensive?
Yeah you are right. It can be a mixed bag. Depending on FDA approvals, and legislation regarding prices for meds. All in all it should be something people use like food.. especially with an aging population..I would say that its ups.are not so high and it's lows are not so low, but it is up and down in pharma/health care, also high tech affects..and debt ratios.
TLTW is the ultimate defensive high yeild ETF. BONDS WITH COVERED CALLS...
I've always thought it's a good idea to have some allocation to intermediate and/or long term treasuries through something like VGIT or VGLT. I can also see the value of a little gold as 'dry powder' during a downturn, even if it's real expected return over the long term is 0, and I believe Hedgfundie mentioned a preference to utilities, but haven't used those myself.
Thanks for watching!
I will take VDC in my Roth over Bonds every single day. Back test a combo of 20% VDC 80% SPY vs 20% BND/ 80% SPY back to 2008 and tell me which one has more downside with a better returns...
VDC and bonds are 2 completely different things.
VGIT!
🙌
I have a feeling this video will be seeing more views soon. How do you feel about FDFAX?
It's a mutual fund for the Consumer Staples sector.
that TMF though!
Totally
Is SH etf a waste if time ?
No one knows for sure.
Intermediate and long term bond ETFS WILL go down significantly in rising interest rate environments and will have a strong correlation to stocks. Be careful using this as a hedge for stock market drops. VGIT dropped 17% since it's 2020 high and is still down.
...and their yields will rise to compensate over time. Evaluating an interm. or long bond fund over several years makes little sense. "Strong correlation to stocks" is hyperbole and is demonstrably false. Lastly, these bonds have still shot up in every single sudden severe crash in history, including the March 2020 flash crash. Still the closest thing we have to a stock "hedge" outside of put options. The investor with a short horizon shouldn't be buying these in the first place.
@@OptimizedPortfolio The stock Market dropped for most of 2022. Not a crash bit still saw a lot of portfolios lose money. intermediate bonds funds only contributed to those losses, didn't protect against them.
@@seamushanley2770 Indeed. More of a slow bleed. Trend soared in 2022.
6 out of 7 ETF's LOST since you made this vid. Horrible advice! Better luck flipping a coin.
You must have misunderstood. Only 1 of these is an inverse equities ETF, which would move directly opposite the market. The point is that the others would be expected to fall LESS than the market, which I believe is true for all of them YTD, not that they'd be the inverse of it.