Consumer Staples

The $3.5 billion First Trust Dorsey Wright Focus 5 ETF (NasdaqGM: FV) has helped exchange traded fund investors target some high-flying sectors, but the momentum strategy recently cut its biotech position for a defensive play. The First Trust Dorsey Wright Focus 5 ETF follows DWA’s relative strength ranking system where sector ETFs are compared to […]

As volatility spikes and markets gyrate, some investors have turned to more conservative stocks and defensive sector exchange traded funds to ride out the storm. For instance, many have traditionally turned to defensive sectors like utilities, consumer staples and health care – sectors that would hold up in any economic cycle as U.S. consumers will […]

As the equities market experienced its worst start to a new year, exchange traded fund investors fled growth sectors and jumped into defensive stocks, along with betting on a valuation play. Investors’ eyes are on the tech space this week amid a spate of fourth quarter earnings results, but the technology sector was among the […]

In a volatile market environment, investors may stick to defensive sector-related exchange traded funds that could do well in most economic conditions. However, HSBC recently argued that investors should stick to consumer staple stocks due to potential uncertainty in the pharma space, reports Julie Verhage for Bloomberg. “In a world where global growth remains low […]

After a Federal Reserve-induced multi-year rally in equities, exchange traded fund investors pulled out of U.S. stocks and shifted into international markets where people may still find more attractive valuations. For instance, the WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ) was the most popular ETF of 2015, attracting close to $14.0 billion in net inflows […]

Hedge funds and institutional investors have been riding the extended outperformance of the consumer sectors. Retail investors can also tap into what the so-called smart money is buying into through related hedge fund-replication exchange traded funds. “Since 1990, the S&P 500 consumer staples sector has been among the best performers in the broader index, rising […]

While consumer staples stocks and sector-specific exchange traded funds have acted as a stabilizing force in a diversified investment portfolio, some investors may be starting to shift out of the relatively defensive asset category. The Consumer Staples Select SPDR (NYSEArca: XLP) saw $271 million in net outflows over the past week, according to Investors […]

Consumer staples and sector-related exchange traded funds were weaker Wednesday after a major consolidation in the industry. On Wednesday, the Consumer Staples Select SPDR (NYSEArca: XLP) was 1.5% lower, First Trust Consumer Staples AlphaDEX Fund (NYSEArca: FXG) was down 1.3% and Vanguard Consumer Staples ETF (NYSEArca: VDC) dipped 1.2%. Walgreens Boots Alliance (NasdqGS: WBA) agreed […]

All sectors are not created equal. Investors who seek to adapt their investment portfolio to prevailing market trends may target specific areas of market through sector-related exchange traded funds. On the upcoming webcast, How Well Do Your Know Your Sectors?, State Street Global Advisor’s David Mazza, V.P. and Head of Research, Research Strategist Jared Rowley […]

Retail chain giant Wal-Mart (NYSE: WMT) shares plunged the most in over 15 years Wednesday, dragging on the consumer staples and retail sector-related exchange traded funds. Wal-Mart’s stock fell over 9% Wednesday, its larges fall since February 2000, after the firm projected that earnings will decline 6% to 12% in the fiscal 2017, citing higher […]

Retail food chain Albertsons (NYSE: ABS) is set to launch its initial public offering later this week. Exchange traded fund investors may also see the supermarket pop up in some IPO- and eventually consumer staples-related ETFs. Albertsons is set to launch its IPO around October 14 at $23 to $26 per share for an equity […]

Actively managed mutual funds have been getting pummeled over the past few months, adding to the investment case for passively managed index-based investments and exchange traded funds as a better way to track the markets. According to a J.P. Morgan U.S. equity strategy note, 67% of mutual funds underperformed their benchmarks in the third quarter, […]

The Chinese government has been enacting reforms to shift away from an export model to domestic growth. Investors can capitalize on change through more consumer-oriented China exchange traded funds. For instance, the Global X China Consumer ETF (NYSEArca: CHIQ) is the only ETF to focus on China’s consumer sectors. CHIQ has a 58.9% tilt toward […]

Exchange traded funds allow investors to capture broad markets. However, investors should be mindful of what ETFs they pile into as layering the investments may inadvertently overweight a portfolio to a market segment. “When you purchase an ETF, you might end up with more or less than you bargained for due to the variety of […]

While the markets are rebounding, a heavily shorted consumer staples sector exchange traded fund may continue to fall behind. The Consumer Staples Select Sector SPDR (NYSEArca: XLP) was up 1.0% Wednesday. The defensive staples sector was among the worst performing areas of the market this year, falling 2.8% over the past month and dipping 0.8% […]

Investors can capitalize on a shifting market and changing business cycles through sector-specific exchange traded fund plays. On the recent webcast, Strategizing with Sectors, Jared Rowley, Research Strategist for State Street Global Advisors, pointed out that different sectors show varying correlations to the benchmark S&P 500 index. [Sector ETFs to Capture Cyclical Trends] For instance, […]

After a lackluster first quarter, the U.S. economy could pick up steam, and investors can capitalize on the faster growth through cyclical stocks and sector-related exchange traded funds. “As earnings move slowly higher, the market should generally rise in that direction,” David Kostin, chief U.S. equity strategist for Goldman Sachs, said on CNBC. “So from […]

Traders have been exiting a homebuilder exchange traded fund in droves as the housing sector weakens. However, investors may just be dumping the homebuilder ETF along with other consumer sector bets. Investors pulled a record amount of cash from SPDR S&P Homebuilders ETF (NYSEArca: XHB) after the ETF hit an eight-year high in February, Bloomberg […]

A leisure and entertainment exchange traded fund is hitting its stride as American consumers forgo grocery shopping and spend more at restaurants. Year-to-date, the PowerShares Dynamic Leisure and Entertainment Portfolio (NYSEArca: PEJ) has increased 5.5%. PEJ targets U.S. leisure and entertainment companies, such as resorts, hotels, cruises and restaurants, and also weights components based on […]

A globetrotting portfolio may help diversify away from domestic equities, but U.S. consumer staples sector and related exchange traded funds may continue to outpace foreign consumer brands. Despite slowing down over the past month, the Consumer Staples Select Sector SPDR (NYSEArca: XLP) has outpaced international consumer companies over the past year, rising 22.0%. In contrast, […]

The strong U.S. dollar has weighed on large-cap companies with overseas foreign exchange exposure, but small-cap consumer sector exchange traded funds may capitalize on improved growth at home. For instance, ETF investors can use the PowerShares S&P SmallCap Consumer Staples Portfolio (NasdaqGM: PSCC) and PowerShares S&P SmallCap Consumer Discretionary Portfolio (NasdaqGM: PSCD) cover the consumer […]

Low gasoline prices put more money back into U.S. consumers’ wallets. However, the added boost to income has not translated to outsized performance in discretionary stocks and related exchange traded funds as skeptical consumers hold back. Year-to-date, the Consumer Staples Select Sector SPDR (NYSEArca: XLP) dipped 1.0%, whereas the Consumer Discretionary Select Sector SPDR (NYSEArca: […]

Investors can capitalize on lower oil prices and the direct benefit to Americans through consumer staples exchange traded funds with heavy exposure to companies that will benefit from the improved growth outlook. The Consumer Staples Select Sector SPDR (NYSEArca: XLP) rose 18.1% over the past year. XLP is up 0.6% year-to-date. Goldman Sachs (NYSE: GS) […]

Lower oil and gasoline prices are putting more money into consumer wallets, which could translate to increased spending and continued strength for consumer staples exchange traded funds. Consumer staple stocks were among the better performing areas of the market. Last year, the Consumer Staples Select Sector SPDR (NYSEArca: XLP), the largest consumer staples ETF, rose […]

Investors can access emerging market equities through exchange traded funds, but people should also be aware of certain risks associated with this area of the international market, such as currency risks. For instance, a popular emerging market strategy has been to ride out the growth in the consumer sector. Over the past five-year period, the […]

When overweighting a specific sector, exchange traded fund investors should monitor their underlying holdings or risk becoming overexposed to a single company stock. Most ETFs try to reflect the performance of an underlying index, and many benchmarks are market capitalization-weighted, so the largest companies make up the largest weights. While many broad index ETFs diversify […]

Emerging market investors are shying away from consumer staples sector, along with related exchange traded funds, as years of outperformance have made the sector a crowded traded. Over the past three years, the EGShares Emerging Markets Consumer ETF (NYSEArca: ECON) has generated an average annual return of 6.7%. Meanwhile, the iShares MSCI Emerging Markets ETF […]

In the current equities tumult, defensive utilities sector exchange traded funds have been outperforming the broader market. Since the S&P 500 index’s September 18 high, the Utilities Select Sector SPDR (NYSEArca: XLU) has increased 1.2%. Meanwhile, the S&P 500 has declined 3.7%. The utilities sector has traditionally acted as a safe-haven play in the equities space. […]

As the equities market experiences larger swings and jostles about, investors can turn to consumer stock exchange traded funds, capitalizing on the sector’s staying power in any economic environment. Over the past month, the Consumer Staples Select Sector SPDR (NYSEArca: XLP) has gained 0.3% and the Vanguard Consumer Staples ETF (NYSEArca: VDC) increased 0.2%. Meanwhile, […]