Durable and Defensive: A Look at Consumer Staples ETFs
If investors can get past valuations in the consumer staples sector, there are a raft of low-cost ETF options offering access to the space.
A version of this article was published in the February 2016 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor by visiting the website.
U.S. consumer staples stocks performed well in 2015. In aggregate, this defensive sector returned nearly 7%, as measured by the performance of Consumer Staples Select Sector SPDR ETF (XLP). This was meaningfully higher than the S&P 500’s 1.3% return. In general, consumer staples companies tend to outperform during recessionary periods and, to a lesser extent, in late-cycle periods.
Robert Goldsborough does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.