Citing signs of a precarious market, including Warren Buffett's favorite valuation metric sitting well above his past warning level, the article names three ETFs that history suggests held up better in downturns. The Schwab U.S. Dividend Equity ETF (SCHD) yields 3.3%, holds 102 stocks, and has about 41% in consumer staples and healthcare. The Health Care Select Sector SPDR Fund (XLV) holds 60 of the largest healthcare stocks, outperformed the S&P 500 over the last 12 months, and fell less and recovered faster than the overall market during the 2000 dot-com bust and the 2008 financial crisis. The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) holds Treasury bills maturing in one to three months and pays a distribution yield above 4%; it may not deliver big returns in a crash but can protect capital while investors wait for cheaper stocks. The article notes Berkshire Hathaway had roughly $325 billion parked in short-term Treasuries as of the end of Q2.
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