Healthcare ETF XLV showed strong defense in 2022, outperforming broader market during downturns.

In 2022, the healthcare sector ETF XLV outperformed the broader market by holding up better during the stock and bond selloff caused by rising inflation and interest rates. Historically, XLV has delivered competitive returns with significantly lower risk and smaller drawdowns compared to the S&P 500, making it a strong defensive option for investors. Its focus on stable healthcare companies with inelastic demand helps reduce volatility without complex strategies. XLV is a liquid, low-cost ETF that retirees and conservative investors can consider to add defensive balance to their portfolios.