Additionally, for an alternative index-based offering, investors can turn to the First Trust Consumer Staples AlphaDEX Fund (NYSEArca: FXG). FXG tracks a smart-beta AlphaDEX index that draws consumer staples from the Russell 1000 based on growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets.
“The weekly chart for the Consumer Staples Sector also shows a stall following all time highs although it is still within this well defined three year rising channel. It could be due for a rest in the near term but, as mentioned earlier, I would be cautious in going short here. While it’s true that Staples have been rallying hand in hand with the broader stock market indexes since the 2/11 lows, it’s also true that the sector’s defensive nature emerged quite clearly at the end of 2015 and into early 2016 as the market corrected,” adds See It Market.
Consumer Staples Select Sector SPDR