iShares 20+ Year Treasury Bond ETF
Price
$83.13
YTD
+2.50%
Expense
0.15%
Yield
4.15%
🇺🇸 United States
Best ETFs During a Recession
Recession-proof ETFs that protect your portfolio during economic downturns and bear markets.
Recession-Proof Your Portfolio
Recessions are inevitable parts of the economic cycle. While you cannot avoid them, you can position your portfolio to minimize damage and even profit during downturns. The best recession ETFs include defensive sectors, high-quality bonds, and alternative assets like gold that tend to hold their value or appreciate when stocks fall.
Recession-Resistant Asset Classes
Long-term Treasuries — Rally as rates get cut
Gold — Classic safe haven asset
Healthcare — Defensive, inelastic demand
Consumer Staples — People still buy essentials
Dividend Aristocrats — Quality companies with pricing power
🏆 Winner — #1 pick
SPDR Gold Shares
Price
$422.60
YTD
+15.20%
Expense
0.40%
Yield
0.00%
Health Care Select Sector SPDR Fund
Price
$171.58
YTD
+8.20%
Expense
0.09%
Yield
1.55%
Vanguard Total Bond Market ETF
Price
$72.54
YTD
+2.15%
Expense
0.03%
Yield
4.25%
Vanguard Dividend Appreciation ETF
Price
$243.23
YTD
+12.80%
Expense
0.06%
Yield
1.75%
iShares National Muni Bond ETF
Price
$105.39
YTD
—
Expense
0.07%
Yield
2.90%
Frequently asked questions
What is the main goal of a recession-proof ETF strategy?
The goal is to minimize portfolio losses during economic downturns while potentially benefiting from defensive or safe-haven assets.
Which ETF is recommended for long-term Treasury exposure during recessions?
TLT (iShares 20+ Year Treasury Bond ETF) is the top pick.
What does TLT invest in?
TLT provides exposure to long-term U.S. Treasury bonds, which typically rally when interest rates fall.
What is the price of TLT?
TLT is priced at approximately $86.79.
What yield does TLT provide?
TLT offers a yield of around 4.15%.
Which ETF is recommended for gold exposure during recessions?
GLD (SPDR Gold Shares) is the runner-up.
What does GLD invest in?
GLD holds physical gold bullion, providing exposure to gold without physical storage requirements.
What is the price of GLD?
GLD is priced at approximately $429.41.
Does GLD provide any yield?
No, GLD does not provide a yield.
Which ETF focuses on defensive healthcare stocks?
XLV (Health Care Select Sector SPDR Fund) invests in U.S. healthcare companies.
What is the price of XLV?
XLV is priced at approximately $146.81.
What yield does XLV provide?
XLV offers a yield of about 1.55%.
Which ETF provides broad bond exposure for stability?
BND (Vanguard Total Bond Market ETF) provides broad exposure to U.S. investment-grade bonds.
What is the price of BND?
BND is priced at approximately $73.58.
What yield does BND provide?
BND provides a yield of around 4.25%.
Which ETF focuses on quality dividend growth during downturns?
VIG (Vanguard Dividend Appreciation ETF) tracks companies with 10+ consecutive years of dividend increases.
What is the price of VIG?
VIG is priced at approximately $216.02.
What yield does VIG provide?
VIG offers a yield of around 1.75%.
Which ETF offers tax-exempt municipal bond exposure?
MUB (iShares National Muni Bond ETF) invests in U.S. municipal bonds, ideal for taxable accounts.
What is the price of MUB?
MUB is priced at approximately $106.49.
What yield does MUB provide?
MUB provides a yield of about 2.9%.
Why are long-term Treasuries important in a recession portfolio?
They often rise in value when rates are cut during recessions, acting as a safe-haven asset.
Why include gold in a recession strategy?
Gold is a classic safe-haven asset that tends to hold value or appreciate when stocks fall.
Why include healthcare ETFs like XLV?
Healthcare demand is relatively inelastic, making it a defensive sector during economic downturns.
Why are dividend growth ETFs like VIG useful in recessions?
They provide steady income from high-quality companies with pricing power, offering stability in volatile markets.
How do municipal bond ETFs help investors during recessions?
They provide tax-exempt income and stability, especially useful for retirees or high-income investors in taxable accounts.
What combination of assets makes a portfolio recession-resistant?
A mix of long-term Treasuries, gold, defensive equities (healthcare, consumer staples), dividend growers, and municipal bonds provides balance and downside protection.