The Consumer Staples Select SPDR (NYSEArca: XLP) is one of this year’s best-performing sector exchange traded funds. That is just one example, but leadership from XLP and other consumer staples exchange traded funds confirms investors have been partial to defensive sectors this year.
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.
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.