Putting The DEF In Defense

With the market returning to its gyrating patterns, investors lately have been looking at ways to play it safe. Sectors like utilities and consumer staples have falling into favor once again. Their high dividends and stable cash flows make them ideal positions in stormy weather. Investors may also want to consider another exchange traded fund to add to their list. The Claymore/Sabrient Defensive Equity DEF follows a group of companies with attributes such as low P/E valuations, conservative balance sheets, stable dividend payments and a history of outperformance during bearish market periods. Top holdings include Kellogg’s K, Consolidated Edison ED and Annaly Capital NLY. The fund is thinly traded, but is designed to be a buy/hold investment. The ETF yields 3 percent.