Procter & Gamble (PG - Get Report) fell 3.5% early today, dragging Consumer Staples Select Sector SPDR (XLP) down 1.16% with it. P&G's slide comes in the wake of a fiscal fourth-quarter earnings drop of 18% from the previous year. Revenue in the fourth quarter fell 2.23% from the year before.This moment is a teachable one for ETF investors who flock to funds like XLP to avoid security-specific risk. P&G accounts for more than 16% of XLP's assets, an allocation that will surely sway the ETF. Capitalization-weighted strategies, favored by issuers like State Street (STT) and i Shares, can often overweight top components when executing their strategies.
Procter Bullies Consumer Staples ETF
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.