However, with investors playing defense, XLP and rival ETFs have new found allure.
“If you look at the bigger picture, XLP has appreciated 87.47% since its inception on Dec. 16, 1998. Think about that inception date for a minute. This means that XLP has delivered a gain to investors despite the Tech Bubble, 9/11, and the Financial Crisis. What makes XLP even more intriguing as a low expense ratio of 0.14% — the average ETF expense ratio is 0.46%,” reports Investopedia.
The First Trust Consumer Staples AlphaDEX Fund (NYSEArca: FXG) is another way of playing the staples sector. FXG uses a different type of strategic beta approach to staples stocks.
Another way of looking at FXG is that the ETF has benefited from the long-standing out-performance of mid-caps relative to broader U.S. indices. By not being heavily allocated to the most popular staples names, such as Procter & Gamble and Coca-Cola (NYSE: KO), FXG is able to offer more of a growth feel to a sector more associated with defense, not growth. [Super Staples ETFs]
Consumer Staples Sector SPDR
Tom Lydon’s clients own shares of FXG.