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Kiplinger
Kiplinger
Business
Tony Dong, MSc

The Best Health Care ETFs to Buy

(Image credit: Getty Images)

Among the S&P 500's 11 major sectors, three are widely considered "defensive" thanks to the inelastic demand for the services and products they provide. "Elasticity" refers to how sensitive consumer demand is to changes in price.

For utilities, consumer staples and health care, demand remains fairly constant regardless of economic conditions, helping companies maintain stable earnings and making their stocks less volatile during downturns.

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