With the S & P 500 surging more than 18% in 2024, it might be time for investors to get make a few defensive moves in their portfolios. The technology sector – including artificial intelligence play Nvidia – has helped lift the overall index, rising 33% this year alone. But the tech-driven surge is spurring some financial advisors to reassess their clients' exposure to large-cap tech and turn toward unloved asset categories that could also be poised to rise.
" Saccocia also likes health care, which is up a modest 10% in 2024. "It might take a little longer to manifest but we think is an interesting combination of offense and defense, and it provides meaningful cash flows for investors," Saccocia said. The Vanguard Dividend Appreciation ETF , with a total return of 11.2% in 2024, has a 24.4% weighting in tech, but financials make up 19.7% of the fund, while health care accounts for another 16%.
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