Two other ways to get exposure to consumer spending are staples ETFs such as First Trust AlphaDEX Consumer Staples (NYSEArca: FXG) or PowerShares Dynamic Consumer Staples (NYSEArca: PSL). Both funds have exposure to companies whose products consumers will still buy, regardless of how tight their spending becomes. PSL has fewer holdings than FXG: 38 and 59, respectively. PSL also caps any one component at 3%; FXG’s heaviest weighting is 5%. In the last year, FXG has fared better, gaining 14.6%, although PSL is no slouch: it’s up 12.7% in the last year.
With retail as uncertain as it is now, the best bet is to monitor the trend lines. While many of these funds are still above the 200-day moving average, that could change if current trends hold. Sign up for alerts to be notified of a trading opportunity.
Visit our retail page for more stories about consumer spending.
Tisha Guerrero contributed to this article.