Consumer spending makes up, The November U.S. jobs report, released in December, was positive as the unemployment rate fell to a. M1 Finance offers all these Consumer Staples ETFs. Read my lengthier disclaimer here. Under no circumstances does this information represent a recommendation to buy or sell securities. Past performance does not guarantee future returns. This results in much more exposure to small- and mid-caps than the above ETFs. Investment products discussed (ETFs, mutual funds, etc.) quotes delayed at least 15 minutes, all others at least 20 minutes. Federal stimulus is a short-term fix, not a sustainable solution. With over 90 holdings, VDC provides broader diversification and comparatively more mid- and small-cap exposure than XLP above. However, he holds XLP in some client accounts. 1125 N. Charles St, Baltimore, MD 21201. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. The Fidelity MSCI Consumer Staples Index ETF (FSTA) is somewhat in between the above two in terms of exposure. 2020 InvestorPlace Media, LLC. In a slowing economy, the smart money will begin to move into high-quality, dividend-paying, large-cap stocks, such as XLP top holdings Proctor & Gamble Company (NYSE:PG), Coca-Cola Co (NYSE:KO) and Altria Group (NYSE:MO). Required fields are marked *. Read more here. What Is a Leveraged ETF and How Do They Work? are for illustrative purposes only. Analytical and entrepreneurial-minded data nerd, usability enthusiast, Boglehead, and Oxford comma advocate. In the short term, no one knows where the market is headed. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. In the height of selling during mid-March, consumer staples was a leading sector and XLP was in the No. Necessary cookies are absolutely essential for the website to function properly. Copyright © Best ETFs for 2020: Consumer Staples Select Sector Fund (XLP) Is a Winner A slowing economy in 2020 favors high-quality, dividend-paying, consumer staples stocks like the holdings in XLP Copyright © If you prefer to access Consumer Staples globally, the iShares Global Consumer Staples ETF (KXI) is roughly 50% exposed to the United States, with the other 50% in foreign holdings around the world. This allows me to continue producing high-quality, ad-free content on this site and pays for the occasional cup of coffee. The Vanguard Consumer Staples ETF (VDC) is next in popularity, with over $6 billion in assets. Absent any surprises, the economic environment will remain favorable for stocks in 2020 but investors’ collective appetite for risk may begin to decline as signs of economic sluggishness continue. Specifically, consumers will spend less on discretionary goods and services, such as luxury items, entertainment and technology, but continue buying the non-discretionary necessity items, such as food, beverages, drugs and basic household products. How It Works & How to Invest in It, How To Invest in an Index Fund – The Best Index Funds of 2020, How to Invest in the S&P 500 Index – 3 of the Best ETFs, Why and How To Buy Bonds Online: A Guide for Beginners, 8 Reasons Why I’m Not a Dividend Income Investor, How to Invest Your HSA (Health Savings Account), Investing Brokers with the Lowest Margin Rates, M1 Borrow Review (How M1’s Margin Loan Works), VIG vs. VYM – Comparing Vanguard’s 2 Popular Dividend ETF’s, The Best Vanguard Bond Funds – 11 Popular ETFs, The Best Vanguard Dividend Funds – 4 Popular ETFs, The Best Vanguard Growth Funds – 5 Popular ETFs. Consumer Staples are an attractive sector for those seeking steady growth, healthy dividends, and low volatility. Consumer staples is a defense play. Article printed from InvestorPlace Media, https://investorplace.com/2020/03/best-etfs-2020-consumer-staples-spdr-fund-perfect-defense/. As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities. All rights reserved. See the full list here. ETF issuers who have ETFs with exposure to Consumer Staples are ranked on certain investment-related metrics, including estimated revenue, 3-month fund flows, 3-month return, AUM, average ETF expenses and average dividend yields. Investors have no precedent to draw upon. At the close of 2019, the U.S. economy was clearly showing classic, late-phase business cycle signs. This broader diversification comes at a cost; this ETF has an expense ratio of 0.46%. XLP – Consumer Staples Select Sector SPDR Fund, FSTA – Fidelity MSCI Consumer Staples Index ETF, KXI – iShares Global Consumer Staples ETF, RHS – Invesco S&P 500 Equal Weight Consumer Staples ETF, VIG vs. VYM – Comparing Vanguard’s 2 Popular Dividend ETFs, The Best M1 Finance Dividend Pie for FIRE & Income Investors, Improving M1 Finance’s Aggressive Portfolio Pie, Improving M1 Finance’s Moderately Aggressive Pie, The 6 Best Index Funds for Beginners for Long-Term Growth, Ray Dalio All Weather Portfolio Review, ETF’s, & Leverage, Riding the HEDGEFUNDIE Adventure (UPRO/TMF) on M1 Finance, Golden Butterfly Portfolio Review and M1 Finance ETF Pie, Harry Browne Permanent Portfolio Review, ETFs, & Leverage, Treasury Bonds vs. Corporate Bonds – The Showdown, The 60/40 Portfolio Review and ETF Pie for M1 Finance, Bogleheads 3 Fund Portfolio Review and M1 Finance ETF Pie, Portfolio Asset Allocation by Age – Beginners to Retirees, The 5 Best Stock Brokers Online for Investing (2020 Review), The 4 Best Investing Apps for Beginners (2020 Review), The 7 Best Small Cap Value ETFs (3 From Vanguard). At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. These cookies do not store any personal information. Disclaimer:  While I love diving into investing-related data and playing around with backtests, I am in no way a certified expert. Copyright © 2020 InvestorPlace Media, LLC. This website uses cookies to improve your experience. There are several potential benefits of holding a consumer staples fund like XLP during the COVID-19 bear market and recession. But although upside potential is not typically as high as the more beaten down stocks or sectors, XLP shareholders can still participate in gains when the market bounces back up.

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