The consumer staples sector has a reputation for being boring and stodgy, but boring has been beautiful this year as the fifth-largest sector weight in the S&P 500 has been one of 2016’s best-performing groups.
Consumer staples stocks and exchange traded funds (ETFs) can be considered resurgent following a trying 2015. Last year, staples ETFs had their hands full with rising rate-related issues.
For example, several of the largest staples names have reported lackluster earnings, blaming the strong dollar for weak overseas currency conversions.
Another data points confirms the leadership of the staples sector. Year-to-date, 18 of the 30 members of the Dow Jones Industrial Average and that includes three XLP holdings: Coca-Cola (NYSE: KO), Procter & Gamble (NYSE: PG) and Wal-Mart (NYSE: WMT).
The staples group and the corresponding ETFs have been bolstered this year by a weakening dollar and a sanguine interest rate environment.[related_stories]
The defensive consumer staples sector has been one of the year’s best performing areas of the S&P 500 as investors turned to more conservative plays in a volatile market, reports Stephanie Yang for CNBC.
Additionally, the time is right to consider consumer staples ETFs.
The sustainable nature of the consumer staples sector could help investors weather a potential storm in the summer months.
Since April 30, 1945, the S&P 500 rose in price an average 1.4% from May through October, compared to an average 6.8% from November through April, writes Todd Rosenbluth, S&P Global Market Intelligence Director of ETF Research, in a research note.
With that, here are 13 consumer staples ETFs to consider.
Traditional Staples ETFs
1. Consumer Staples Select SPDR (NYSEArca: XLP)