Investors Are Turning Defensive: 2 ETFs To Consider For What Could Be Coming

Mar. 06, 2025 7:02 AM ET, , , , , , , , , 17 Comments
(12min)

Summary

  • Despite my preference for individual stocks, I've added Schwab's U.S. Large-Cap Growth ETF to address my portfolio's lack of tech sector exposure.
  • With inflation creeping up and potential tariffs on the horizon, investors might consider dividend-focused stocks as safe-havens in a high inflation environment.
  • The Putnam BDC Income ETF offers a near 9% yield and includes high-quality BDCs like Ares Capital, Blackstone Secured Lending, and Main Street Capital.
  • PBDC, despite a high expense ratio, has outperformed its peer VanEck BDC Income ETF in total returns since January 2023, making it a strong consideration.
  • Both ETFs offer a blend of high yield and growth, making them suitable for risk-averse investors seeking diversification during market uncertainty.
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Dashboard oil pressure gauge has a scale showing INFLATION and a needle pointing at the danger red zone. Illustration of the concept of high inflation rate and increasing cost of living

Dragon Claws

Introduction

As someone who currently owns near 20 individual holdings across my taxable & retirement portfolios, I've essentially created my own ETFs. But lacking exposure to the technology sector, I recently added Schwab's U.S. Large-Cap Growth ETF (



This article was written by

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Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend investing in quality blue-chip stocks, BDC's, and REITs. I am a buy-and-hold investor who prefers quality over quantity and plans to supplement his retirement income and live off dividends in the next 5-7 years. I aspire to reach and help the hard working, lower and middle class workers build investment portfolios of high quality, dividend-paying companies. I also hope to give investors a new perspective to help them reach financial independence.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ARCC, BXSL, SCHG, ADC, VICI, PEP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Related Stocks

SymbolLast Price% Chg
SCHG--
Schwab U.S. Large-Cap Growth ETF™
XLK--
The Technology Select Sector SPDR® Fund ETF
PBDC--
Putnam BDC Income ETF
ARCC--
Ares Capital
BXSL--
Blackstone Secured Lending Fund.

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