With the ASX having fallen by 4.5% in the last month alone, it's unsurprising that Aussie investors are concerned about the performance of their portfolios.
After all the index is barely up over the last year and the ASX could have some more lumps and bumps ahead of it.
So it could be a good idea to hold stocks with low betas, because they should (in theory) fall less than the wider index during a correction. Here are three that offer low betas and much more.
CSL Limited
Health care company CSL Limited (ASX: CSL) is an obvious defensive choice. After all, demand for new drugs tends to remain fairly resilient whatever the economic weather, so a beta of 0.6 is perhaps unsurprising.
However, there's more to CSL than just a low beta. The company is forecast to grow earnings at an annualised rate of 15.3% over the next two financial years and with shares in the company trading on a PEG ratio of 1.63, CSL seems to offer growth at a reasonable price. This mix of growth, value and defensive qualities could prove to be a potent combination.
Telstra
Telstra Corporation Ltd (ASX: TLS) may not seem like an obvious defensive play. After all, the company is in the midst of a transitional period as its cable network is taken over by the NBN. However, with a beta of just 0.5, Telstra's share price should (in theory) fall by 0.5% for every 1% fall in the wider index, thereby making it a strong defensive play.
Allied to this is a fat, fully franked yield of 5.5%, an enviable position in the Aussie mobile market, as well as growth potential in Asia. As a result, Telstra could turn out to be a sound defensive investment right now.
Woolworths
With a beta of just 0.66, Woolworths Limited (ASX: WOW) could prove to be a sound defensive option if the ASX does continue its pullback. However, there's more to Woolworths than just defensive merits, since the company recently announced an ambitious plan to stimulate bottom line growth over the medium term.
Indeed, Woolworths is set to spend up to $1 billion transforming its supply chain as it seeks to make the business leaner, more efficient and more profitable. This alongside a fully franked yield of 4%, means that the company could be one to watch in the months ahead. Especially if the ASX does drop further.
