Buying growth stocks can be very fun and very profitable. Holding investments providing stable performance and consistent profits in the medium- and long-term is advantageous. Stable stocks are vital for older investors planning to sell equities soon for retirement funding. Stress-free ETFs meet this criterion.
These ETFs will deliver easy profits and will never interrupt your sleep at night. And of course, you won’t have to monitor their performance every day or even every week. Stable stocks provide the kind of stress-free outlook many investors are looking for.
Additionally, low-risk ETFs can help mitigate the risk of significant investment losses during a recession. So, let’s look at three of the best options to consider, for those looking to set their portfolios and forget it.
| VPU | Vanguard Utilities Index Fund | $142.50 |
| HACK | ETEMG Prime Cyber Security ETF | $47.43 |
| NOBL | ProShares S&P 500 Dividend Aristocrats | $89.09 |
Vanguard Utilities Index Fund (VPU)
Every business and consumer certainly needs electricity. Given their regulated monopoly status, U.S. electric utilities can raise prices to cover capital investments, leaving customers with no alternative but to pay. As a result, the profits of utilities almost never drop sharply.
These characteristics make the Vanguard Utilities Index Fund (NYSEARCA:VPU) one of the tops, stress-free ETFs to buy.
Moreover, electric utilities receive growth “kickers” from two sources. First, the electrification of transportation is significantly increasing the overall demand for electricity. Additionally, utilities’ investments in wind and solar energy projects have proved to be highly lucrative.
Also noteworthy is that Wall Street is currently predicting that the Federal Reserve will start cutting interest rates later this year. Since most utilities pay dividends, lower interest rates tend to be positive for utility stocks.
Speaking of dividends, this stress-free ETF has a dividend yield of 3.1% and an expense ratio of just 0.1%.
ETEMG Prime Cyber Security ETF (HACK)
The ETEMG Prime Cyber Security ETF (NYSEARCA:HACK) is another ETF providing relatively low-risk upside over the long-term. This is largely a direct result of the nature of the cybersecurity space, and its increasing importance for individuals and companies. Most sizable firms will keep investing in cybersecurity whether they are doing very well, very badly, or somewhere in between.
Illustrating the ETF’s strength and resilience, HACK has gained 27% over the last five years, closing at $47.18 on May 23. Moreover, its lowest level during those five years was $33.67, to which it descended in March 2022.
The ETF’s largest holding is BAE Systems (OTCMKTS:BAESY), a British defense company wbich is well-positioned to succeed due to increased European defense spending. The company excels in cybersecurity, developing technology for threat analysis at UK borders, and safeguarding F-16 jets from cyberattacks.
The ETF’s second-largest holding is VeriSign (NASDAQ:VRSN), which, among other services, provides security for websites.
Among the other names in the ETF’s top ten holdings are IT security heavyweights Fortinet (NASDAQ:FTNT), Check Point (NASDAQ:CHKP), Crowdstrike (NASDAQ:CRWD), and Palo Alto Networks (NASDAQ:PANW).
ProShares S&P 500 Dividend Aristocrats (NOBL)
As I noted in a previous column, dividend aristocrats are generally recognized as companies that have raised dividends for 25+ consecutive years, are well-managed, and relatively resilient with respect to recessions.
The ProShares S&P 500 Aristocrats (NYSEARCA:NOBL) ETF, comprising numerous resilient stocks, is a stress-free investment for those anticipating a major downturn.
Over the last five years, NOBL stock has surged 44% to roughly $90 per share. Its lowest point during that time was $57.67, which it reached during the beginning of the coronavirus crisis.
The ETF’s top holdings include West Pharmaceutical Services (NASDAQ:WST), a company selling containment and delivery systems for drugs, and W.W. Grainger (NYSE:GWW), a company specializing in safety, security, and maintenance supplies.
Among the ETF’s other ten largest holdings are Clorox (NYSE:CLX), spice maker McCormick & Co. (NYSE:MKC), and PepsiCo (NYSE:PEP).
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
