"Dividend ETFs may be the best investment you can make today. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT ) , iShares Global Consumer Staples ETF (NYSEARCA:KXI ) , and iShares US Pharmaceuticals ETF (NYSEARCA:IHE ) are worth considering first. These ETFs can help you ride through a near-term market crash by providing ballast while providing you with income to edge out inflation. You can rotate your gains into these ETFs for the short term, or you could hold them for the long run."
"The iShares 20+ Year Treasury Bond ETF tracks the ICE U.S. Treasury 20+ Year Bond Index, which measures the performance of U.S. Treasury bonds with remaining maturities of 20 years or more. You get exposure to long-dated U.S. government debt through a single liquid ETF, and it's unlikely to tumble during a recession. If anything, it should rise. Government bonds with long maturities come with higher yields"
"Moreover, the yield you get is very attractive now and is worth buying into before further interest rate cuts. TLT gets you a 3.97% dividend yield that is paid monthly. This yield is very sticky due to the 20-year-plus maturity on the underlying bonds. When the market tumbles and the Fed issues emergency interest rate cuts, long-term bonds will be among the only few safe assets to hold for a respectable yield."
Dividend ETFs can serve as ballast during market downturns while delivering income that helps outpace inflation. Investors can rotate gains into these ETFs for short-term reserves or hold them long term to compound returns. The iShares 20+ Year Treasury Bond ETF (TLT) provides exposure to U.S. Treasury bonds with 20+ years to maturity, offering high, sticky yields backed by the U.S. government and relative recession resilience. TLT presently yields about 3.97% paid monthly and can surge during stress when the Fed cuts rates, as when TLT jumped from $93 to over $122 during late 2008.
Read at 24/7 Wall St.
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