Drink Up With Consumer Staples ETFs

The Guggenheim S&P Equal Weight Consumer Staples ETF (NYSEArca: RHS), the equal-weight answer to XLP, has a slightly large beverage than XLP at nearly 21%. RHS’ largest beverage holding is Coca-Cola Enterprises (NYSE: CCE) at 2.7%. Coca-Cola, Pepsi, Dr. Pepper Snapple and Monster combine for 10.1% of RHS’ weight. [Get Stuck on Staples With This ETF]

“While DPS’s revenue growth is expected to be a more modest 1.3% in 2015, EPS is expected to increase 6.3%, aided by margin expansion and share repurchases. Agnese believes the company is well positioned to benefit from favorable trends in its non-carbonated beverages such as Snapple and Hawaiian Punch. DPS has a 2.5% dividend yield. S&P Capital IQ thinks both stocks deserve to trade a premium P/E multiple to beverage and consumer staple peers due to their stronger growth prospects,” according to S&P Capital IQ. [An ETF for Staples M&A]

The research firm has an overweight rating on XLP while rating RHS marketweight. XLP and RHS are up 0.4% and 3%, respectively, this year.

Consumer Staples Select Sector SPDR