3 Dividend ETFs to Buy and Hold for Life if the Market Crashes

Core Viewpoint - Dividend ETFs are highlighted as a strong investment option, particularly in the context of potential market downturns, providing both income and stability against inflation [1][2]. Group 1: iShares 20+ Year Treasury Bond ETF (TLT) - TLT tracks the ICE U.S. Treasury 20+ Year Bond Index, offering exposure to long-dated U.S. government debt, which is expected to perform well during recessions [3]. - Long-term government bonds provide higher yields and are considered a safe investment, backed by the U.S. government [4]. - TLT currently offers a 3.97% monthly dividend yield, which is expected to remain stable, especially during market downturns when the Federal Reserve may cut interest rates [5]. - Historical performance shows TLT's price can significantly increase during recessions, as seen in late 2008 when it rose from $93 to over $122 [6]. Group 2: iShares Global Consumer Staples ETF (KXI) - KXI tracks the S&P Global 1200 Consumer Staples Index, providing exposure to global consumer staples stocks, which are known for their inelastic demand [7]. - This ETF is considered a good complement to bonds, offering both dividends and potential upside, with a low beta indicating resilience during market downturns [8]. - KXI yields 2.38% with an expense ratio of 0.39%, and it benefits from international stock exposure, which can appreciate if the U.S. dollar weakens [9]. Group 3: iShares US Pharmaceuticals ETF (IHE) - IHE tracks the Dow Jones U.S. Select Pharmaceuticals Index, focusing on large pharmaceutical companies that tend to perform well during economic downturns [11]. - The pharmaceutical sector is characterized by inelastic demand for medications, making it a stable investment choice [12]. - IHE has significant exposure to major companies like Eli Lilly and Johnson & Johnson, which together account for approximately 48% of the ETF's holdings, and it has shown strong year-to-date performance with a 26.7% increase [13].