The common thread between these ETFs, and XLP, is that the holdings typically are made up of “household names”, and Consumer Staples stocks including the likes of PG, PM, KO, WMT, and other stable, and sometimes stodgy “old economy” names. Performance has been impressive in 2012, even though many historically consider the Consumer Staples sector “defensive”.
XLP is up 11.41% versus the S&P 500 Index rallying 15.58% during the same time frame, and moreover, XLP boasts a dividend yield of 2.59% versus the SPY’s 1.91%. This is the case throughout Consumer Staples driven, as well as “high yield equity” or “low volatility” ETFs.
Consumer Staples Select Sector SPDR
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