State Street Consumer Staples Select Sector SPDR ETF

XLP

Market cap $14.3B

The market is swinging wildly as investors try to determine when the war in Iran will end. Investing in low-volatility ETFs can be a great way to ride out some of the market's turmoil.

Retirement portfolios face a specific set of demands: income that arrives reliably, capital that holds its value through market downturns, and costs low enough that compounding works in the investor's favor rather than against it.

IYK charges a higher expense ratio than XLP, while both offer roughly the same dividend yield. IYK holds more stocks and adds modest exposure to healthcare and basic materials, while XLP sticks strictly to consumer staples.

Since the Federal Reserve began raising interest rates in 2022, there have been growing concerns that the economy would eventually tip into a recession. Investors can't time the market, but they can prepare their portfolios for a recession.

XLP charges a significantly lower expense ratio and delivers a higher dividend yield than PBJ. PBJ outperformed XLP over the past year but lagged slightly on five-year total growth.

VDC holds a more diversified portfolio with over 100 stocks, while XLP is more concentrated with 35 holdings. XLP offers a slightly higher dividend yield, but VDC has delivered stronger total returns over the past year.

RSPS charges a higher fee but offers a slightly higher dividend yield than XLP. XLP has outperformed RSPS over the past year and five-year periods, with smaller drawdowns.

Rising oil prices and Middle East tensions are squeezing household finances and weakening consumer sentiment, steering investors toward defensive ETFs.

Dividend investing looks easy and simple on the surface. However, there are many important nuances that investors fail to take into account. I share five important lessons that completely reshaped how I approach dividend investing and have greatly enhanced my returns and dividends over the years.

ETFs focused on consumer staples, utilities, low volatility, and high-quality metrics should bounce back, says one strategist.