5 Safe ETF Buying Zones as Global Trade Tensions Escalate

President Donald Trump’s trade tariff threats and their implementations have raised fears of a global trade war. This has made investors jittery, leading to a risk-off trade. Notably, Wall Street has been on a rocky path as the S&P 500 logged its worst day of 2025, falling 1.7% on the first trading day of March, extending its losses from February.The rounds of tariffs will hurt U.S. consumers, driving the prices of goods, thereby curtailing spending. It will further impact the worldwide economy and corporate profits, particularly for big U.S. exporters. All these will continue to weigh on the stock market and can disrupt global supply chains (read: 5 Sector ETFs Up 10% Despite February's Market Slump).Tariff WoesTrump’s planned tariff of 25% on America’s top trading partners — Mexico and Canada — finally went into effect on Mar 4. Both countries had been negotiating with the Trump administration to avoid the tariffs, but yesterday, Trump said that there is "no room left for Canada or Mexico” to strike a deal. The new administration also doubled down tariffs on China to 20% from 10%, effective March 4, kicking off a potential trade war.Canada and China retaliated against Trump’s move. Canada announced 25% tariffs on C$155 billion ($107 billion) worth of U.S. goods, with C$30 billion in immediate effect on everyday goods like pasta, clothing and perfume.Meanwhile, China has announced fresh 10-15% duties on several U.S. agricultural and food products, set to take effect from March 10. Per Reuters, products like soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables and dairy products will face 10% tariffs, while 15% tariffs will be imposed on chicken, wheat, corn and cotton. China also imposed export and investment restrictions on 25 U.S. firms. Mexico promised to retaliate soon. President Claudia Sheinbaum indicated plans for reciprocal measures, including tariffs on U.S. products such as pork, cheese and steel, though specifics were pending.Last month, Trump announced 25% global tariffs on steel and aluminum imports, which are expected to take effect on March 12. He signed plans for reciprocal tariffs but delayed their implementation until April to allow his administration to negotiate on a one-by-one basis with countries that could be impacted (read: ETFs to Win/Lose as Trump Imposes 25% Tariffs on Steel and Aluminum). Further, President Trump threatened to impose 25% tariffs on automobile, semiconductor and pharmaceutical imports in April. He also threatened to levy new tariffs on Europe, and is considering imposing 25% tariffs on international lumber and wood products over the next month or sooner, with more to come.Apart from trade fears, the U.S. economy has shown signs of slowing down. The latest data reveals that the activity in the manufacturing sector slowed in February, while costs increased and employment contracted, weighed down by Trump's tariff policies. U.S. business activity stalled in February, and consumer sentiment dropped. Concerns have built up in the homebuilder space that tariffs would raise the cost of building materials, including lumber and appliances, leading to elevated home prices and reduced affordability. Homebuilder sentiment hit a five-month low in February.Trade tariffs and signs of a weakening economy led to higher demand for safe-haven avenues or lower-risk securities. Below, we have highlighted five such zones and their popular ETFs, wherein investors can stash their money amid the escalating trade war.Gold - SPDR Gold Trust ETF GLDGold is viewed as a safe haven in times of economic or political turmoil. The trade jitters have raised the appeal for the bullion as a store of value and hedge against market turmoil. As such, the ultra-popular product tracking this bullion like GLD could be an interesting pick. The fund tracks the price of gold bullion measured in U.S. dollars and kept in London under the custody of HSBC Bank USA. GLD is an ultra-popular gold ETF with an AUM of $85.2 billion and a heavy volume of about 7 million shares a day. SPDR Gold Trust ETF charges 40 bps in fees per year from investors and has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook.Long-Dated Treasury - iShares 20+ Year Treasury Bond ETF TLTProducts tracking the long end of the yield curve often provide a safe haven. TLT tracks the ICE U.S. Treasury 20+ Year Bond Index and has an AUM of $53 billion. Holding 46 securities in its basket, the fund focuses on the top credit-rating bonds with an average maturity of 25.67 years and an effective duration of 16.28 years. The expense ratio comes in at 0.15% and the average daily volume is heavy at around 31 million shares. However, TLT currently has a Zacks ETF Rank #4 (Sell) (read: Trade War Heats Up: ETFs to Shield Your Portfolio).Low Volatility - iShares Edge MSCI Min Vol USA ETF USMVThese products have the potential to outpace the broader market in the event of turmoil, providing significant protection to the portfolio. These funds include more stable stocks that have experienced the least price movement in their portfolio. These allocate more to defensive sectors that usually have a higher distribution yield than the broader markets. While there are several options, USMV, with an AUM of $23.8 billion and an average daily volume of 1.5 million shares, is the most popular ETF. The fund charges 15 bps in annual fees and has a Zacks ETF Rank #2 (Buy), with a Medium risk outlook (read: Market Turmoil Raises Appeal for Low-Volatility ETFs).Dividend - Vanguard Dividend Appreciation ETF VIGDividend-paying securities are major sources of consistent income for investors when returns from the equity market are at risk. This is especially true as these stocks offer safety in the form of payouts and stability in the form of mature companies that are less volatile to large swings in stock prices. The companies that offer dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. While the dividend space has been crowded, ETFs with stocks having a strong history of dividend growth like VIG seem to be good picks. The ETF has an AUM of $90.5 million and trades in a volume of 1 million shares a day on average. It charges 5 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy), with a Medium risk outlook.Value - Vanguard Value ETF VTVValue stocks seek to capitalize on the inefficiencies in the market and have the potential to deliver higher returns with lower volatility compared with their growth and blend counterparts. Value stocks are less susceptible to trending markets and their dividend payouts offer safety in times of market turbulence. Vanguard Value ETF follows the CRSP US Large Cap Value Index. It holds 340 stocks in its basket with an AUM of $137.6 billion and charges 4 bps in annual fees. The ETF trades in a volume of 2 million shares per day on average and flaunts a Zacks ETF Rank #1.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports SPDR Gold Shares (GLD): ETF Research Reports Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports Vanguard Value ETF (VTV): ETF Research Reports iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks