Diversifying geographically can mitigate domestic market risks. The iShares MSCI EAFE ETF (EFA) offers exposure to developed markets outside North America, providing investors with international diversification and potential opportunities in various economic environments.
In conclusion, during periods of market turbulence, sectoral ETFs offer investors targeted strategies to navigate volatility. By focusing on sectors with defensive characteristics or growth potential, such as financials, healthcare, consumer staples, utilities, and low-volatility stocks, investors can position their portfolios to withstand economic fluctuations. Additionally, considering infrastructure investments, dividend-focused funds, precious metals, small-cap stocks, and international diversification can further enhance resilience. It’s essential to conduct thorough research and align investment choices with individual financial goals and risk tolerance.
