Exchange traded funds (ETFs) with a heavy weighting in fast food purveyors have been outperforming the broader market year-to-date. But should we really be surprised?
No matter what the markets are doing in the United States and abroad, it can’t take away our yearning for fast food. In tough times, it’s a cheap dinner out. In good times, it’s belly-soothing comfort food.
At home, it brings back childhood memories for many people. Abroad, millions of newly-minted middle class consumers are discovering the unique joys of a flame-broiled Whopper and a McDonald’s royale with cheese (i.e. the Quarter Pounder).
That’s probably why two of the largest ETFs with heavy weightings in fast food are up about 11% year-to-date, while the S&P 500 is up about 1% in the same period, says ETF Channel for Forbes. [4 ETFs to Cut the Fast Food Craving.]
These days, in fact, most of the growth in fast food is coming from the international space.