Investors view the consumer staples as a “boring” sector, as it is not very technological, has low elasticity, and has less swings than the cyclical sectors. However, consumer staples are known for their steady and slow growth and tend to avoid the swings of cyclical consumer spending cycles. [Four Consumer Staples ETFs for Tight Wallets]
Furthermore, consumer staples companies and ETFs offer tempting dividend yields. The earnings stability and the safety of this area of the market can be a hedge when other asset classes are moving in lockstep.
Consumer staples ETFs include:
Vanguard Consumer Staples ETF
Tisha Guerrero contributed to this article.