Investors Get Defensive with Consumer Staples ETFs

Third, the Guggenheim S&P Equal Weight Consumer Staples ETF (NYSEArca: RHS) has a 2% yield and costs 50 basis points per year. It is one of the more expensive funds in this sector. Packaged food, beverages and household products are all equally represented, a unique approach for this ETF. The $40 million in AUM makes this fund smaller than the others. [Stock ETF Investors Could Win No Matter Who is President]

“Morningstar’s equity analysts only project low- to mid-single-digit top-line growth for consumer staples firms over the next five years. So, while these firms may offer something of a safety net during difficult economic periods, investors shouldn’t pile in with the expectation for exceptional growth during a cyclical upturn,” Robert Goldsborough wrote for Morningstar.[S&P’s Favorite Consumer Staples ETFs]

Select Sector SPDR Consumer Staples ETF

Tisha Guerrero contributed to this article.