The three aforementioned stocks along with several other prime holdings in FXG are usually lightly represented in or not at all held by traditional staples ETFs.
There is no denying FXG’s growth feel has proven alluring with investors. The ETF has added $354 million of its almost $1.4 billion in assets under management just this year.
Still, investors expecting the usual plain-vanilla staples ETF should remember that is not what they are going to get. That is not a negative, but it is a reminder that FXG’s stellar long-term returns are not a free lunch in the volatility department. FXG’s underlying index, the StrataQuant Consumer Staples Index, has easily topped the S&P 500 Consumer Staples Index over the past three years, but over that time FXG’s standard deviation is more than 400 basis points higher than the cap-weighted staples index, according to First Trust data.
First Trust Consumer Staples AlphaDEX Fund
