Buying of staples ETFs could be a sign some investors betting on a rebound in consumer stocks, both of non-cyclical and cyclical varieties. Since the start of the third quarter, only two ETFs have commanded more new assets than the $1.68 billion added by the Consumer Discretionary Select Sector SPDR (NYSEArca: XLY).
It is not a coincidence that staples ETFs are on the move to the upside this month. Since 1999, the first full year in which the nine SPDRs traded, XLP is usually the best SPDR in August, posting an average gain in the eighth month of the year of less than 1%, according to CXO Advisory.
If precedent is an accurate guide, XLP does not need to be sold on Aug. 31 or Sept. 1 because the ETF is usually the second-best of the nine SPDRs in September. [August’s Top Sector ETF Ideas]
Consumer Staples Select Sector SPDR
