The U.S. gross domestic product (GDP) contracted 0.3% during the first quarter of 2025. It’s the first time this metric has moved into negative territory since 2022. Fears of an economic recession are more prevalent with the traditional definition being two consecutive negative quarters of economic output.
Even though a recession is not guaranteed, some investors have ways to insulate their portfolios from times of economic turmoil. One of those strategies includes investing in stocks or exchange-traded funds relating to some sectors that usually perform well during downturns.
So what ETFs are set to stun investors?
Gold and Silver Mining ETFs
Precious metals like gold, silver, palladium, and platinum are often seen as safer investments when the stock market crashes. One look at the record prices of gold per ounce, hovering around $3,300, can tell you that. Gold prices have risen by more than $600 an ounce since January 2025.
Many gold ETFs are based on the number of gold bars stored in various locations, such as the SPDR Gold Trust (GLD). These types of ETFs can fluctuate with the spot price of gold. Gold, historically, outperforms during recessions. The price of gold surged 28% during the short-lived recession in 2020. This is one reason why gold-based funds are considered recession-proof ETFs.
Investors seeking long-term diversification have another option. Gold mining ETFs are a popular choice for savvy investors. These funds balance investing in the precious metal itself and companies that stand to gain revenue from higher gold prices. Also, investors typically see lower expense ratios when investing in gold and silver mining.
Five Decent Gold Mining ETFs
Ohter strong gold ETF candidates include Sprott Gold Miners ETF (SGDM), iShares MSCI Global Gold Miners ETF (RING), Direxion Daily Junior Gold Miners Index Bull (JNUG), Direxion Daily Gold Miners Index Bull (NUGT), and U.S. Global GO GOLD & Precious Metal Miners ETF (GOAU).
The first three on this list generally have lower price points compared to the last two with prices in the low $70 range. The last two gold mining ETFs on this list are leveraged ETFs that use various tactics to double the daily returns on the indexes they follow. Leveraged ETFs have the potential to see significant gains when they work. But the losses can exceed the underlying index if their tactics fail.
The regular gold mining ETFs on this list have risen anywhere from 42 to 55% over the past 12 months. The leveraged ETFs have done better with a rise of 71 to 79% in the same span. GOAU has seen a roughly 12% increase in market value since the fund’s inception in June 2017. All five of these gold mining ETFs have Buy ratings.
If gold mining ETFs appear too expensive for your portfolio, lower-priced options are silver mining ETFs. You might have to hold onto these ETFs for longer periods of time. However, they might be worth looking into for diversifying your portfolio during economic downturns.
Popular silver mining ETFs with decent returns include iShares MSCI Global Silver Miners ETF (SLVP), Amplify Junior Silver Miners ETF (SILJ), and Global X Silver Miners ETF (SIL).
Utilities ETFs
Utilities are generally regarded as recession proof because of secular demand. Homes, apartments, and commercial buildings all need power and water to run efficiently, regardless of how the economy is performing. Utilities are regulated monopolies that have steady, predictable revenue streams. The downside is that they aren’t explosive growth opportunities. However, utilities ETFs have stable returns.
The S&P 500 Utilities Select ETF (XLU) has outperformed the general S&P 500 in 2025. XLU is up 6% while the S&P 500 is down 4%. This ETF is up 12.5% over the past 52 weeks. It has a dividend yield of 2.8% with a Buy rating. Holdings in this ETF include NextEra Energy (NEE), the largest utility in the United States, and Duke Energy (DUK).
Utilities are seen as a haven compared to other sectors. Yes, utilities have dropped since early April. But they haven’t gone down as much as other sectors.
Common utilities ETFs include Vanguard Utilities Index Fund ETF (VPU), iShares US Utilities ETF (IDU), and Harvest Equal Weight Global Utilities (HUTL.TO).
Some of the prices of these ETFs are above $100 a share, making them somewhat prohibitive for hobby investors. Vanguard has a current rating of Buy and has risen 12% over the past 52 weeks as one of the top recession-proof ETFs to invest in now.
Healthcare ETFs
Americans spend close to $5 trillion on healthcare and it’s a highly stable industry but ETFs might not be foolproof during an economic downturn. For instance, pharmaceutical and biotechnology companies may lose research funding from the government during lean budgetary years.
Five Healthcare ETFs to Examine
Consider these top ETFs for healthcare exposure, such as iShares US Healthcare ETF (IYH), Vanguard Health Care ETF (VHT), Invesco S&P 500 Equal Weight Health Care ETF (RYH), Fidelity MSCI Health Care Index ETF (FHLC), and Health Care Select Sector SPDR Fund (XLV).
In general, healthcare stocks are down in 2025 because of uncertainty in the U.S. government, particularly the Health and Human Services department but they do offer a good opportunity against an economic downturn if one happens when considering recession-proof ETFs to invest in now.
Why Follow These Recession-Proof ETFs to Invest in Now?
The stock market has seen a lot of volatility since March 2025. There are fears of a recession. While precious metal mining and utilities ETFs have gone up in price, healthcare ETFs have dropped. There is room for growth in all three of these sectors. Keep an eye on balance sheets, quarterly calls, and market forces that can shift these ETFs toward buy or sell ratings.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.