Top 10 U.S. & Global Consumer Staples ETFs

Non-traditional exterior of a SuperTarget, Jacksonville, Florida. (Photo credit: Wikipedia)

Consumer Staples are considered a more conservative and defensive sector. After all, no matter the economic conditions people still need “stuff” from soap to toothpaste. The earnings growth rate for these companies is more limited due to intensive competition as big box retailers have forced prices lower squeezing margins. Big box retailers Walmart and others have also been able to dictate pricing terms to suppliers putting a squeeze on them as well. This has kept consumer prices lower which is a good thing even though it in so doing it has forced smaller operations out of business...

A defensive sector like Consumer Staples will outperform when equity markets are more bearish and underperform when bullish. They will trend in the same manner overall but still with less beta or volatility since as indicated, even the worst of times, people will need stuff.

There is a wide array of ETFs devoted to the sector providing U.S. and global exposure. Most are linked to established indexes tied to well-known index providers including Russell, S&P, Barclays, MSCI, Dow Jones, Wisdom Tree, PowerShares, EG Shares and so forth. Also included are some so-called “enhanced” indexes that attempt to achieve better performance through more active management of the index 

New issues are coming to market consistently (especially globally) and sometimes these issues will need to become more seasoned before they may be included in our listings.... Continue to read.

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