Suggest a portfolio with complementing consumer cyclical and defensive ETFs
3/16/2025 05:09am
To create a well-diversified portfolio that combines both consumer cyclical and defensive ETFs, consider the following selection and allocation:
**Consumer Cyclical ETFs:**
1. **Vanguard Consumer Discretionary ETF (VCR)**: Tracks the MSCI US Investable Market Index/Consumer Discretionary 25/50 and has a slight upward trend in returns over the past year.
2. **Invesco S&P 500® Equal Wt Cnsm Disc ETF (RSPD)**: Aims to track the investment results of the S&P 500® Equal Weight Consumer Discretionary Index, offering exposure to a range of consumer cyclical sectors.
3. **Fidelity MSCI Consumer Discret ETF (FDIS)**: Provides investment returns that correspond to the performance of the MSCI USA IMI Consumer Discretionary Index, with a slight upward trend in returns.
**Consumer Defensive ETFs:**
1. **Vanguard Consumer Staples ETF (VDC)**: Tracks the performance of the MSCI US Investable Market Index/Consumer Staples 25/50, with a slight upward trend in returns.
2. **Consumer Staples Select Sector SPDR® ETF (XLP)**: Provides investment results that, before expenses, correspond to the price and yield performance of publicly traded equity securities in the consumer staples sector, has performed well year-to-date.
3. **Fidelity MSCI Consumer Staples ETF (FSTA)**: Offers investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Consumer Staples Index, with a slight upward trend in returns.
**Portfolio Allocation:**
1. **Vanguard Consumer Discretionary ETF (VCR)**: 30% allocation
2. **Invesco S&P 500® Equal Wt Cnsm Disc ETF (RSPD)**: 20% allocation
3. **Fidelity MSCI Consumer Discret ETF (FDIS)**: 20% allocation
4. **Vanguard Consumer Staples ETF (VDC)**: 15% allocation
5. **Consumer Staples Select Sector SPDR® ETF (XLP)**: 10% allocation
6. **Fidelity MSCI Consumer Staples ETF (FSTA)**: 5% allocation
This portfolio combines consumer cyclical sectors (VCR, RSPD, FDIS) with defensive sectors (VDC, XLP, FSTA) to achieve a balance between growth potential and stability. The allocation is designed to provide a mix of both cyclical consumer spending and defensive consumer staples, which can help mitigate risks and optimize returns in various economic conditions.