Enduring value guardianDefensive ETFs under the tariff stick
Although no ETF can be "completely unaffected" by U.S. tariff policies, from the perspective of direct impact, some ETFs that primarily invest in domestic defensive sectors and the U.S. consumer market are usually less affected. The main reasons are as follows:
Defensive Sector ETFs
- Consumer Staples ETF (e.g., Consumer Staples Select Sector SPDR Fund, XLP$SPDR FD Consumer Staples(XLP.US)): These funds mainly invest in companies producing daily necessities, whose demand is relatively stable and less dependent on imported raw materials, thus being less affected by tariffs.
- Healthcare ETF (e.g., Health Care Select Sector SPDR Fund, XLV$Health Care Select Sector SPDR(XLV.US)): The healthcare industry is primarily domestic, with relatively independent R&D and production processes, making it less directly impacted by tariff policies.
- Utilities ETF (e.g., Utilities Select Sector SPDR Fund, XLU$Select Sect Spdr Util(XLU.US)): Utility companies mainly serve the domestic market with minimal international supply chain factors, making them relatively stable.
Bond ETFs
- For example, iShares Core US Aggregate Bond ETF (AGG$iShares Core US Aggregate Bd(AGG.US)): Fixed-income products are not directly affected by changes in corporate import/export costs and can serve as safe-haven assets, performing relatively steadily during tariff policy changes.
Low Volatility ETFs
- Such as iShares MSCI USA Minimum Volatility ETF (USMV$iShares MSCI USA Min Vol Factor ETF(USMV.US)): This ETF invests in companies with lower risk and stable fundamentals, which may exhibit lower volatility than the market average even during trade friction and tariff hikes.
In addition to the ETFs mentioned above, some other categories of ETFs are also generally less directly affected by U.S. tariff policies:
Gold ETFs
Gold is considered a traditional safe-haven asset, with prices driven mainly by global economic uncertainty and inflation expectations rather than corporate import/export costs. For example, SPDR Gold Shares (GLD) and iShares Gold Trust (IAU$iShares Gold Trust(IAU.US)) are commonly used gold ETFs by investors, often performing steadily during tariff storms.
Defense/Military ETFs
Companies in the defense and military sector mostly rely on government contracts and domestic production, with low dependence on imported raw materials, making them less directly impacted by U.S. tariffs. For example, iShares U.S. Aerospace & Defense ETF (ITA$ISHRS Aero & Def(ITA.US)) is a typical choice for investors focused on U.S. defense spending and technological advantages.
Real Estate ETFs
The real estate market primarily serves local demand and is less directly affected by global supply chain fluctuations and import tariffs. For example, Vanguard Real Estate ETF (VNQ$Vanguard Real Estate ETF(VNQ.US)) invests in U.S. Real Estate Investment Trusts (REITs), whose income models are closely tied to domestic consumption, making them relatively stable.
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