3 ETFs to buy for stress-free profits
Buying growth stocks can be a lot of fun and very profitable. Holding investments that offer stable performance and consistent profits over the medium to long term is advantageous. Stable stocks are essential for older investors who plan to sell stocks soon to fund their retirement. Stress-free ETFs meet this criteria.
These ETFs will give you easy profits and will never interrupt your sleep at night. And of course, you won’t have to monitor their performance every day or even every week. Stable stocks offer the kind of stress-free outlook that many investors seek.
Additionally, low-risk ETFs can help mitigate the risk of large investment losses during a recession. So, let’s look at three of the best options to consider, for those looking to set their wallets and forget it.
| VPU | Vanguard Utilities Index Fund | $142.50 |
| TO HACK | ETEMG Prime Cyber Security ETF | $47.43 |
| NOBL | ProShares S&P 500 Dividend Aristocrats | $89.09 |
Vanguard Utilities Index Fund (VPU)
Source: zhao jiankang / Shutterstock.com
Every business and consumer certainly needs electricity. Given their regulated monopoly status, US electric utilities can raise prices to cover capital investments, leaving customers with no choice but to pay. As a result, utility profits almost never drop sharply.
These characteristics make Vanguard Utilities Index Fund (NYSEARC:VPU) one of the best stress-free ETFs to buy.
In addition, electric utilities receive growth “accelerators” from two sources. First, the electrification of transport significantly increases the overall demand for electricity. Additionally, utility investments in wind and solar energy projects have proven to be very lucrative.
It should also be noted that Wall Street is currently predicting that the Federal Reserve will begin cutting interest rates later this year. Since most utilities pay dividends, lower interest rates tend to be positive for utility stocks.
Speaking of dividends, this stress-free ETF has a dividend yield of 3.1% and an expense ratio of just 0.1%.
ETEMG Prime Cyber Security ETF (TO HACK)
Source: Song_about_summer / Shutterstock
THE ETEMG Prime Cyber Security ETF (NYSEARC:TO HACK) is another ETF with relatively little upside potential over the long term. This is largely a direct result of the nature of the cybersecurity space and its growing importance for individuals and businesses. Most large companies will continue to invest in cybersecurity whether they are doing very well, very poorly, or somewhere in between.
Illustrating the strength and resilience of the ETF, HACK has gained 27% over the past five years, closing at $47.18 on May 23. Moreover, its lowest level in these five years was $33.67, which it went down to in March 2022.
The ETF’s largest holding is BAE systems (OTCMKTS:BAESY), a UK defense company that is well positioned for success due to rising European defense spending. The company excels in cybersecurity, developing threat analysis technology at UK borders and protecting F-16 aircraft against cyberattacks.
The second largest ETF holding is VeriSign (NASDAQ:VRSN), which, among other services, provides website security.
Other names in the ETF’s top ten holdings include IT security heavyweights Fortinet (NASDAQ:FTNT), Checkpoint (NASDAQ:CHKP), Crowd (NASDAQ:CRWD), And Palo Alto Networks (NASDAQ:PANW).
ProShares S&P 500 Dividend Aristocrats (NOBL)
Source: Youri K / Shutterstock.com
As I noted in a previous column, Dividend Aristocrats are generally recognized as companies that have increased their dividends for more than 25 consecutive years, are well-managed, and relatively resilient to recessions.
THE ProShares S&P 500 Aristocrats (NYSEARC:NOBL) ETF, comprising many resilient stocks, is a stress-free investment for those anticipating a major downturn.
Over the past five years, NOBL stock has jumped 44% to around $90 per share. Its lowest point during this period was $57.67, which it reached at the start of the coronavirus crisis.
The ETF’s top holdings include Western Pharmacy Services (NASDAQ:WST), a company selling drug containment and delivery systems, and WW Grainger (NYSE:GWW), a company specializing in safety, security and maintenance supplies.
Among the ETF’s other ten largest holdings are Clorox (NYSE:CLX), spice machine McCormick & Co.. (NYSE:MKC), And PepsiCo (NYSE:DYNAMISM).
As of the date of publication, Larry Ramer had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.
InvestorPlace
