Geoffrey Lordi

The Case for a Defensive Equity ETF

Agreed, Joe.

Another part of the problem with DEF is its horrific volume. With spreads like this, and no takers on either side of the aisle, an otherwise reasonable strategy could end the day so far off that comparing its performance over the short- and intermediate-terms proves largely irrelevant.

And, technically speaking, prescient investors - or traders - weren't necessarily looking for uber-defensive plays following the March lows as so much had already been choked from folks' accounts. To wit: the S&P outperformed DEF by 11% in the froth back up, and Vanguard's all-world, ex US, pummeled DEF to the tune of 40%.

I think the idea of this ETF wasn't bad, but I think tracking, volume, and competition make it a nondescript choice.