Global tensions are heating up following the surprise U.S. air strikes on Syria last week in retaliation of a chemical weapons attack that killed about 100 civilians. This was the first direct American assault on the Syrian Government.

The attack has fueled tensions with Russia and Iran, which backed Syrian President Bashar al-Assad, as well as North Korea. Trump signaled new sanctions that would soon hit.

Inside the Tensions

The air strike has dealt a major blow to relations between Moscow and Washington. Moscow suspended an agreement to minimize the risk of in-flight incidents between U.S. and Russian aircraft operating over Syria. This could lead to a possible U.S.-Russia war.

Also, Iran accused the White House for violating international law and siding with the Islamic State. As a result, it increased military support for President Bashar al-Assad’s regime. Both Russia and Iran pledged to hit back the U.S. with extremely serious consequences against further American military actions.

North Korea, a key ally of Syria, called Trump’s missile strike on a Syrian airbase ‘an unforgivable act of aggression’ that justifies its decision to strengthen their nuclear weapons to protect the country against such wild moves by Washington. Amid concerns over North Korea advancing its nuclear weapons program, a U.S. navy strike group has diverted to the western Pacific Ocean near the Korean peninsula.

Amid signs of flared-up global tension, investors should protect their portfolio with low volatility ETFs. This is because these products have the potential to outpace the broader market providing significant protection to the portfolio. These funds include more stable stocks that have experienced the least price movement in their portfolio. Further, these allocate more to defensive sectors that usually have a higher distribution yield than the broader markets.

As such, we have presented three ETFs that could be solid options for investors in the current choppy market.

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