It stands to reason that a low beta ETF like XLP would be a credible way to get through a lethargic month like August, but there could be more to staples ETFs than meets the eye. XLP fell 1.7% on heavy volume Friday, bringing its July slide to 3.5%.
On Thursday, Michael Batnick of Ritholtz Wealth Management noted that staples stocks this week are turning in “their worst performance since the Taper Tantrum of 2013.”
It is hard to say August’s second-best SPDR is looking any better. That would be the Utilities Select Sector SPDR (NYSEArca: XLU), which at one point this year was the best of the nine SPDRs. Now, XLU enters Friday coming off a 3.5% July decline.
XLU and theVanguard Utilities ETF (NYSEArca: VPU) fell below their 50- and 100-day moving averages on Thursday. [Sudden Slides for Popular Sector ETFs]
Adding to the element of intrigue surrounding XLP/XLU trade in August is this factoid: In September, the two ETFs are also, historically, the two best SPDRs, with XLU taking over the top spot, according to CXO.
Consumer Staples Select Sector SPDR
