After a slow start to 2014, staples stocks and XLP have bounced back amid the flight to value sectors over growth and momentum destinations. Over the past 90 days, XLP is higher by 8.4%. [Super Staples ETFs]
“Since 1990, the Consumer Staples sector has been the second best performing sector in the S&P 500 Index during the seasonally weak May-October periods. Consumer Staples stocks outperformed the broader index 70% of the time and have increased on average 4.6%, much higher than the 1.3% average for the S&P 500 Index. Further during mid-term election years, defensive sectors such as Consumer Staples have held up much better during the seasonally weak summer,” according to S&P Capital IQ.
XLP is worth sticking with over the May-October time frame as the ETF ranks as the best SPDR in August and second-best SPDR in September, notes CXO. XLP fell 2.1% in May 2013.
Consumer Staples Select Sector SPDR
