Here's how to trade 'flight to safety' investments for Treasury bonds, gold bullion and utility stocks using exchange-traded funds.
The best investment for 30-year U.S. Treasury bonds is the 20+ Year Treasury Bond ETF (TLT) . Gold bullion is best represented by the SPDR Gold Shares ETF (GLD) . Investors seeking dividends invest in the Utilities Select Sector SPDR Fund (XLU) .
If you are interested in junk bonds, the SPDR Barclays High Yield Bond ETF (JNK) is an appropriate option, but beware, junk bonds perform in tandem to stocks. If the Federal Reserve continues to raise rates, spreads versus U.S. treasuries are likely to widen, particularly if the stock market experiences a Trump slump correction.
