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Defensive ETF (DEF) Hits New 52-Week High

ByZacks Investment Research
Published 06/21/2016, 09:47 PM
Updated 07/09/2023, 06:31 AM
DEF
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For investors seeking momentum, Guggenheim Defensive Equity ETF (V:DEF) is probably on radar now. The fund just hit a 52-week high, and is up 25.7% from its 52-week low price of $30.34/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

DEF in Focus

DEF provides exposure to defensive market sectors that have historically outperformed in down markets. It is tilted toward large cap stocks with key holdings in financials, utilities, consumer discretionary, consumer staples and telecom services. The fund charges investors 65 basis points a year in fees and employs a ‘smart’ beta approach by equal weighting all 98 stocks in the portfolio (see: all the Large Cap ETFs here).

Why the Move?

The defensive corner of the stock market has been an area to watch lately given heightened concerns over Brexit that could hammer the stocks and the global economy. Additionally, uneven global economic growth, the U.S. election and geopolitical tensions are weighing heavily on the market. All these drove investors to defensive investments and in particular DEF. This is because the ETF offers a well-diversified portfolio that could better sustain the periods of volatility while remain strategically positioned for opportunities in up markets.

More Gains Ahead?

Currently, DEF has a Zacks ETF Rank of 2 or ‘Buy’ rating with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely some promise for those who want to ride this surging ETF a little further.


GUGG-DEF EQUITY (DEF): ETF Research Reports

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Zacks Investment Research

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