Among consumer staples sector ETFs, S&P Capital IQ analysts have an “overweight” ranking for Consumer Staples Select Sector SPDR Fund (NYSEArca: XLP), which has a 2.71% yield, iShares Dow Jones US Consumer Goods (NYSEArca: IYK), which has a 2.01% yield, iShares S&P Global Consumer Staples Sector Index Fund (NYSEArca: KXI), which has a 2.44% yield, and Vanguard Consumer Staples Index Fund (NYSEArca: VDC), which has a 2.57% yield.
The analysts expect earnings will be bolstered by moderating commodity costs, restructuring/cost-reductions and stock repurchase activity. Moreover, U.S. companies could be looking for greater mergers and acquisitions opportunities as a way to tap into international growth.
For more information on the consumers staples sector, visit our consumer staples category.
Max Chen contributed to this article.