This defensive, stock-based ETF is beating the market this year

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This defensive, stock-based ETF is beating the market this year $DEF (via ETFEdgeCNBC)

; it kicks those out of the S&P 500," he said, referring to a widely used volatility metric. "It looks for stocks that have historically done poorly in downturns; it kicks those out of the S&P 500. Then, it looks at what's left and it only picks those with really long-term, sustainable revenue models. You end up with 100 equal-weighted stocks with pretty broad sector exposure.

"You have things that are clearly defined as safety, clearly defined as risk, and I think you sort of get a hybrid model here where you only go with things that have outperformed," Grasso said.

 

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