5 Best Defensive ETFs To Buy For Plunging Markets

4. First Trust Consumer Staples AlphaDEX Fund (NYSE:FXG)

5-Year Share Price Performance as of March 25: 48.36%

First Trust Consumer Staples AlphaDEX Fund (NYSE:FXG) aims to mirror the performance, before fees and expenses, of the StrataQuant Consumer Staples Index, which represents the consumer staples sector. The ETF was launched in May 2007. As of March 25, 2024, First Trust Consumer Staples AlphaDEX Fund (NYSE:FXG)’s net assets amounted to $437.25 million, along with an expense ratio of 0.63% and a portfolio comprising 40 stocks. It is one of the best defensive ETFs to invest in. 

Performance Food Group Company (NYSE:PFGC) is one of the largest holdings of First Trust Consumer Staples AlphaDEX Fund (NYSE:FXG). The company distributes food and food-related products across the United States. On February 7, Performance Food Group Company (NYSE:PFGC) reported earnings for the second quarter of fiscal year 2024. The company announced a non-GAAP EPS of $0.90, missing market estimates by $0.02, and a revenue of $14.3 billion, beating Street consensus by $20 million. 

According to Insider Monkey’s fourth quarter database, 37 hedge funds were long Performance Food Group Company (NYSE:PFGC), compared to 32 funds in the prior quarter. 

ClearBridge Mid Cap Strategy stated the following regarding Performance Food Group Company (NYSE:PFGC) in its fourth quarter 2023 investor letter:

“Our holdings in the consumer staples sector also helped drive performance. Restaurant foodstuff distributor Performance Food Group Company (NYSE:PFGC) continues to benefit from greater consumer spending on dining. Likewise, Coty, the global beauty company comprised of a market-leading prestige fragrance business and mass cosmetic business, reported strong quarterly earnings with outperformance across all geographic regions and operating segments. With the continued strength of the prestige fragrance market globally, we believe the company’s fundamentals have improved much more than the stock’s valuation.”