These 3 Dividend ETFs Outperformed Every Market Crash Since 2000

Core Viewpoint - Investors are advised to consider dividend ETFs as a defensive strategy during potential market downturns, with historical performance indicating resilience during recessions [1][2]. Group 1: Dividend ETFs Overview - The State Street Consumer Staples Select Sector SPDR ETF (XLP) focuses on companies selling essential goods, providing stability during economic downturns due to inelastic demand for consumer staples [3][4]. - The State Street Health Care Select Sector SPDR ETF (XLV) includes large healthcare companies, benefiting from consistent demand for medical services regardless of economic conditions [6][7]. - The iShares TIPS Bond ETF (TIP) offers exposure to U.S. Treasury Inflation-Protected Securities, serving as a hedge against inflation and providing liquidity [9][10]. Group 2: Performance and Characteristics - XLP has 40 holdings, with Walmart (11.64%), Costco (9.08%), and Procter & Gamble (7.67%) as its largest components, featuring a 2.66% dividend yield and a low expense ratio of 0.08% [5]. - XLV has outperformed the S&P 500 during past downturns, showing a 12% increase over the past year, with a 1.58% dividend yield and an expense ratio of 0.08% [8]. - TIP has a dividend yield of 3.29%, which fluctuates with inflation, and an expense ratio of 0.18% [10][11].