Investment Q&A

We would be comfortable adding defensive positions today, but would prefer to see some exposure there always for diversification. Markets have been strong but stable securities are never bad to hold, in our view. PPA is 'defense' but not necessarily 'defensive'. The sector can still have some cyclicality, and government moves play a big role. But, considering defense budget increases, we would be fully comfortable holding PPA today. It has done very well and the outlook remains good. VDC is flat on the year as other sectors have surged. It is not exciting, but in a different market environment it should do much better. VIG, for dividend growth, we think is always in vogue. It is 100% equities, so there is market risk, but with rates likely to head lower this fund could do well. Its five-year annualized return is 11.34%. Generally, consumer staples and utilties are the most defensive sectors. We might suggest ZUT here for an additional ETF.