5 Defensive ETFs to Buy Before Recession

3. SPDR S&P MIDCAP 400 ETF Trust (NYSE:MDY)

SPDR S&P MIDCAP 400 ETF Trust (NYSE:MDY) is an exchange traded fund that invests at least 80% of net assets in securities that correspond generally to the price and yield performance of the S&P MidCap 400 Index. 

A key holding of the SPDR S&P MIDCAP 400 ETF Trust (NYSE:MDY) is SolarEdge Technologies, Inc. (NASDAQ:SEDG), a firm that markets semiconductor equipment to the solar industry. Among the hedge funds being tracked by Insider Monkey, London-based investment firm Impax Asset Management is a leading shareholder in SolarEdge Technologies, Inc. (NASDAQ:SEDG), with 754,007 shares worth more than $210 million. 

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and SolarEdge Technologies, Inc. (NASDAQ:SEDG) was one of them. Here is what the fund said:

“Our sustainability orientation has led us to favor renewable energy providers such as SolarEdge Technologies, Inc. (NASDAQ:SEDG) over traditional fossil fuel energy companies. Renewables stocks moved up very strongly over the last several quarters on optimism about huge green stimulus plans in Europe and the U.S. so we took profits and sold SolarEdge Technologies, Inc. (NASDAQ:SEDG) as valuations became demanding.”