Cereal, Toothpaste and Detergent ETFs

The Wall Street Journal‘s John Spence looked into how ETFs have fared in a down year for the market and concludes that Consumer Staples funds have held up best.

In the article Food, Soap Help Some ETFs, Spence notes that funds that hold companies selling everyday consumer products are generally down 15 to 20% compared to the S&P 500 which is down over 30% year to date.

Consumer-staple companies tend to have steadier revenue in an economic slow down, so they tend to weather bear markets in decent shape.

Spence calls out several consumer staples ETFs including Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples ETF (VDC), PowerShares Dynamic Consumer Staples Sector Portfolio (PSL), Rydex S&P Equal-Weight Consumer Staples ETF, First Trust Consumer Staples AlphaDEX Fund and iShares Dow Jones U.S. Consumer Goods Sector Index Fund (IYK).

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