Though oil prices have not yet climbed to the levels that some analysts have predicted, a sharp spike in the early days of the Iran war has nonetheless caused increases at the pump and contributed to a 3.5% selloff of the S&P 500 in the last month. As most retail investors have built their portfolios with the assumption of calm conditions that favor traditional equities, there is a risk that investors may find themselves unprotected if the geopolitical situation sends further shockwaves through markets.
Fortunately, there are accessible exchange-traded funds (ETFs) that may help absorb some of that potential shock. Investors anticipating further market turmoil if the war continues and escalates may consider rebalancing to add one or more of the following funds that are designed for this type of scenario.
