The FTSE 250 has risen 6% in value so far in 2025. It may not have impressed like the FTSE 100 — the UK’s leading share index is up 12% since 1 January. But given the weak state of the British economy and the its high UK bias, that’s still a pretty respectable showing in my book.
Could London’s second-most prestigious share index be about to fall, though? Given mounting uncertainty facing the domestic and global economies, and the FTSE 250‘s high concentration of sensitive growth shares, it’s something I feel savvy investors should at least be prepared for.
With this in mind, here are three top defensive stocks to consider in today’s climate.
A top trust
Real estate investment trust (REIT) Primary Health Properties (LSE:PHP) has a number of qualities that could help protect it during economic downturns. As its name implies, it operates in the highly stable medical sector, letting out properties that are always in high demand, like GP surgeries and diagnostic centres.
Like many other REITs, it also has tenants tied down on long-term contracts. The weighted average unexpired lease term (WAULT) here was 9.1 years as of June, providing excellent earnings visibility. What’s more, almost 90% of its rent roll is funded by government bodies.
Primary Health could be vulnerable to an inflation spike that drives up interest rates. But I think its other defensive qualities make it worthy of serious attention (I own the company in my own portfolio).
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The food producer
We all need to eat, whatever crisis comes along, economic or otherwise. And so food producers and retailers can be excellent lifeboats in tough times.
One from the FTSE 250 that appeals to me is Premier Foods (LSE:PFD). Many of the products it manufactures, like instant noodles, cooking sauces, and packet soups, are cheap to buy and prepare. This provides extra protection during economic downturns.
On top of this, Premier Foods owns some of the country’s most beloved brands like Bisto gravy, Mr Kipling cakes, and Batchelors soup. These provide revenues with added stability (it’s estimated that nine in 10 UK households have one of the company’s products in their cupboards).
Even though volatile cost prices are a long-term danger, I think it’s a top safe-haven share to consider.
A defence star
Defence industry shares such as Chemring (LSE:CHG) can also serve as effective buffers from stock market volatility. This is especially the case today, as European nations rapidly rebuild their armed forces due to fears over Russian and Chinese foreign policy.
This FTSE 250 business manufactures sensors, explosives, and countermeasures for defence forces worldwide. These include technologies that detect threats and protect combat aircraft. And it sells these to dozens of countries across Europe, North America, and Australasia, which helps to safeguards earnings from weakness in one or two regions.
The outlook for US spending is less clear, posing some uncertainty over Chemring’s future earnings. But I think strong demand from other NATO countries should more than offset this and drive growth.
