Defensive ETFs outperform in volatile markets

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Defensive ETFs have outperformed in the volatile markets experienced since the start of this year, according to ETF Securities (ETFS).

The issuer says utilities and other defensive ETFs slipped only marginally amid weak equity markets, in the week starting 18 January. The ETFX Dow Jones Stoxx 600 Utilities fund and Janney Global Water fund fell 2% in this week, only half the decline of the Dow Jones Euro Stoxx 50 index. ETFS says the outperforming defensive ETFs include long term structural growth themes and tend to have lower correlation to the business cycle. The ETFX WNA Global Nuclear Energy fund, the S-Net ITG Global Agri Business fund and the Global Water fund are in the top 10 best performing funds on the i...

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