Related: ETFs to Capitalize on in Shift of Consumer Spending

Although the consumer staples sector can at times be viewed as defensive, this isn’t always the case. Consumer staples holdings within the S&P 500 Quality Index include Costco and Walmart, which are both influenced by consumer spending.

Other key exposures rest in industrials (23.5%) and information technology (22.5%).

These two sectors have the ability to benefit from strong economic trends as well. Moreover, within information technology, the S&P 500 Quality Index holds Visa and MasterCard, with just over a combined 9.0% exposure.

Both of these companies can benefit from strong consumer spending via their transaction-based businesses, which facilitate consumer purchases.

One of the potential benefits of the quality factor is the selection of stocks that have strong balance sheets. In this case, the S&P 500 Quality Index selects stocks based on return on equity, leverage and earnings quality via accruals.

Investors interested in the quality factor may wish to consider the PowerShares S&P 500 Quality Portfolio, which tracks the S&P 500 Quality Index.

This article has been republished with permission from Invesco Powershares.