Procter & Gamble Strength is Feeding Gains for 'XLP' ETF

Procter & Gamble has been around long before the advent of exchange-traded funds (ETFs), but funds heavy with the stock like Consumer Staples Select SPDR (NYSEArca: XLP) are feeding off its strength.

As of May 5, XLP has 15 percent allocated to Procter & Gamble, which is flirting with a 27th record high thus far this year. The stock is up 15 percent year-to-date while XLP is showing a 14.27 percent gain YTD.

On a day when Hasbro is up double digits and Twitter is up double digits, the most surprising thing to me is Procter & Gamble,” said  MarketFoolery” host Chris Hill. “Procter & Gamble’s third-quarter profits and revenue came in higher than expected. This is the third quarter in a row they’ve put up, I would argue, some pretty impressive growth. The stock is actually down a couple of percentage points. It’s had this staggering run over the past year. When we say staggering, what I mean by that is, 40 percent. For a company of Procter & Gamble’s size and history, 40 percent growth in a single year is astonishing to me.”

XLP seeks to provide investment results that correspond generally to the price and yield performance of publicly traded equity securities of companies in the Consumer Staples Select Sector Index. The index includes securities of companies from the following industries: food and staples retailing; household products; food products; beverages; tobacco; and personal products.

“Right now it is breaking out above a trendline, believe it or not, going all the way back to 2000,” said Bill Baruch, president of Blue Line Futures, during a segment on CNBC’s “Trading Nation.” “It closed out above there, so the path of least resistance is higher.”

Key features of XLP:

  • The Consumer Staples Select Sector SPDR® Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Consumer Staples Select Sector Index (the “Index”)
  • The Index seeks to provide an effective representation of the consumer staples sector of the S&P 500 Index
  • Seeks to provide precise exposure to companies from the food and staples retailing, beverage, food product, tobacco, household product and personal product industries in the U.S.
  • Allows investors to take strategic or tactical positions at a more targeted level than traditional style based investing