As Stocks Soar, Investors Pour Into Staples ETFs

The First Trust Consumer Staples AlphaDEX Fund (NYSEArca: FXG) and the PowerShares Dynamic Food & Beverage Portfolio (NYSEArca: PBJ), both of which are strategic beta staples plays, made new highs Tuesday. In fact, the pace being set by FXG and PBJ since mid-October makes these ETFs look biotech plays not staples funds.

Since Oct. 16, FXG has cemented its status as this year’s top-performing staples ETF, gaining 12.4%. PBJ impressed as well with a pop of 11.8%. For the month ended Nov. 17, FXG added $131.5 million in new assets. PBJ is among the top-20 asset-gathering PowerShares ETFs over that period, according to issuer data.

PBJ tracks the Dynamic Food & Beverage Intellidex Index, which evaluates possible constituents based on earnings and price momentum while also employing a quality filter and screening for management action and value. Currently, the ETF does not hold shares of Coca-Cola (NYSE: KO) or Kraft Foods (NasdaqGS: KRFT), though that may not be a bad thing as PBJ has handily outpaced those stocks over the past month.

PowerShares Dynamic Food & Beverage Portfolio