It’s challenging to identify an ETF that was entirely “stable” during COVID-19, as the pandemic caused widespread volatility across nearly all asset classes. However, some ETFs exhibited relative stability due to their underlying asset classes. Here’s a breakdown:
1. Treasury Bond ETFs
ETFs that track U.S. Treasury bonds, especially long-duration Treasuries, generally perform well during periods of economic uncertainty as investors seek safe-haven assets. Examples include:
- iShares 20+ Year Treasury Bond ETF (TLT): Benefited from falling interest rates during the pandemic.
- iShares Short Treasury Bond ETF (SHV): Very low volatility, as it tracks short-term U.S. Treasuries.
2. Gold ETFs
Gold is another classic safe haven during market turmoil. While not perfectly “stable,” gold ETFs like SPDR Gold Shares (GLD) performed relatively well during the COVID-induced volatility.
3. Consumer Staples or Defensive Sector ETFs
ETFs focusing on consumer staples or utilities often show resilience during market downturns because demand for these goods and services remains consistent. Examples include:
- Consumer Staples Select Sector SPDR Fund (XLP)
- Vanguard Consumer Staples ETF (VDC)
4. Money Market ETFs
These funds aim to provide stability by investing in high-quality, short-term debt securities. While they offer low returns, their prices are generally stable. Examples:
- SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)
- iShares Short Maturity Bond ETF (NEAR)
Why “Perfect Stability” Doesn’t Exist
Even these ETFs may experience minor fluctuations in extreme circumstances. True stability, in the sense of no price change, is only achievable with assets like bank savings or cash equivalents, which sacrifice returns for guaranteed safety.
Why iShares Short Duration Bond Active ETF (NEAR)
R ETF is my choice:
- Totally stable even during Covid
- Annual Report Expense Ratio 0.25%
Category Average 0.64% - Yield 5.17%
BUY, SELL, KEEP 
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