Consumer Staples

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First Trust has expanded its line of smart beta exchange traded funds with multi-factor sector plays based on attractive valuations, strong momentum and low volatility to help investors focus on portfolio risk management and improved diversification. First Trust has come out with seven new smart-beta sector ETFs, including: First Trust Nasdaq Bank ETF (NasdaqGM: FTXO) […]

Amid fears of rising interest rates and concerns that the sector is overvalued even relative to its lofty historical norms, the consumer staples has recently encountered some headwinds. Defensive sectors often trade at premium valuations relative to the broader market and that is certainly the case at the moment with the consumer staples and utilities […]

After a multi-year rally, the equities market is trading at elevated valuations. Consequently, investors seeking exposure to stocks may want to consider a smart-beta, multi-factor exchange traded strategy to limit risks and potentially enhance returns. “High Valuations and limited multiple expansion may hinder broad market returns,” Steve Deroian, Head of ETF Strategy at John Hancock […]

With smart or strategic beta exchange traded funds garnering so much attention (and plenty of assets, too), it is worth remembering that equal-weighting is one of the alternatives to traditional market capitalization-weighting that really kick-started the smart beta movement. The Guggenheim S&P 500 Equal Weight ETF (NYSEArca: RSP), the equal-weight answer to traditional S&P 500 […]

With earnings slowing down, the U.S. dollar appreciating against foreign currencies and a slipping crude oil market, exchange traded fund investors should consider their sector weights to gain a better foothold for the hurdles ahead. Sector allocations are an important driver of investment returns. According to Fidelity data, 22% of a portfolio’s performance has been […]

Consumer staples exchange traded funds led U.S. sectors Thursday after Mondelez International (NasdaqGS: MDLZ), the company behind Oreo cookies and Cadbury chocolates, made a takeover bid for confectionery firm Hershey Co. (NYSE: HSY). Leading the charge on Thursday, Guggenheim S&P Equal Weight Consumer Staples ETF (NYSEArca: RHS) jumped 2.6%, PowerShares Dynamic Food & Beverage Portfolio […]

More exchange traded fund investors are looking to smart beta or alternative index-based strategies to fill out their investments, and focusing on which targeted factors within the indexing methodology matters when appropriately balancing a portfolio. On a recent webcast, Smart Beta Factors: How Many and What is Ideal?, Joel Schneider, Senior Portfolio Manager and Vice […]

I do the “ETF of the Week” for MarketWatch every week on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments among exchange traded funds. This week, I looked at the Guggenheim S&P 500 Equal Weight Consumer Staples ETF (NYSEArca: RHS). RHS is a defensive play for the summer doldrums. Click here to […]

In an year of uncertainty, the consumer staples sector has acted as a defensive play for more conservative investors, with an equal-weight consumer staples exchange traded fund standing out from the rest. The defensive consumer staples sector has been one of the year’s best performing areas of the S&P 500, with the S&P 500 Consumer […]

While many opt to “sell in May and go away,” investors who stick around may be better off rotating into more conservative picks, such as consumer staples and sector-related exchange traded funds. For instance, the Consumer Staples Select SPDR (NYSEArca: XLP) tries to reflect the performance of the Consumer Staples Select Sector Index, which is […]

Investment guru Warren Buffett and his Berkshire Hathaway (NYSE: BRK.A) partner Charlie Munger are known for buying good companies at fair prices. Exchange traded fund investors can also mimic the investment philosophy through strategies that target companies with wide economic moats or sustainable competitive advantages. Specifically, Munger and Buffett consider every aspect of a business […]

Exchange traded fund investors have largely shunned developing economies as the area underperformed developed markets over the past few years. As more look to diversify away from an aging bull rally in the U.S., investors should consider re-allocating toward the developing world. According to a recent Emerging Global Advisors survey on investor sentiment, less than […]

John Hancock has filled out the gaps in its smart-beta exchange traded fund suite with five new sector-specific ETFs backed by Dimensional Fund Advisors’ research-based factor investing. According to a press release, John Hancock’s new funds include: John Hancock Multifactor Consumer Staples ETF (NYSEArca: JHMS) John Hancock Multifactor Energy ETF (NYSEArca: JHME) John Hancock Multifactor […]

Consumer staples sector and related ETFs have recently hit all-time highs Defensive consumer staples sector among year’s best performing areas of the S&P 500 as investors turn to more conservative plays in a volatile market Recent strength in defensive consumer staples sector does not bode well for the overall market As the equities markets rebound from uptick […]

Indian stocks and ETFs jump amid government budget proposal to boost economy $12.9 billion proposed on rural programs such as expanding irrigation projects, crop insurance and village roads ETF investors who are seeking to tap into the developing economies should focus on the potential growth in consumer sectors Indian stocks and country-specific exchange traded funds jumped […]

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 ETF.com. 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 […]