This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top 10 Consumer Staples ETFs

RHS (Rydex S&P Equal Weight Consumer Staples ETF) follows the S&P Equal Weight Consumer Staples Index which as the name implies just breaks down the same sector ETF as XLP into equal weights. The fund was launched in November 2006. The expense ratio is .50%. AUM equal $25 million with average daily trading volume of 7.3K shares. The fund has struggled from a marketing perspective given company ownership changes which left it adrift for a period. This could now change with new ownership. As of late July 2011 the annual dividend was $.91 making the current yield 1.44% and YTD return 10.75%.

Data as of July 2011

RHS Top Ten Holdings & Weightings

  1. Whole Foods Market, Inc. (WFM):  2.72%
  2. Supervalu Inc. (SVU):  2.61%
  3. Estee Lauder Companies A (EL):  2.58%
  4. Tyson Foods, Inc. A (TSN):  2.56%
  5. ConAgra Foods, Inc. (CAG):  2.51%
  6. Mead Johnson Nutrition Company (MJN):  2.50%
  7. Dr Pepper Snapple Group, Inc. (DPS):  2.49%
  8. The Kroger Co (KR):  2.48%
  9. Safeway Inc. (SWY):  2.48%
  10. Hormel Foods Corporation (HRL):  2.46%

PBJ (PowerShares Dynamic Food & Beverage ETF) follows the Dynamic Food & Beverage Intellidex Index which another "enhanced" index from PowerShares that is more active in using quantitative analysis to select and manage the index. The fund was launched in June 2005. The expense ratio is .60%. AUM equal $290 million and average daily trading volume is 180K shares. As of late July 2011 the annual dividend yield was $.46 making the current yield 2.24% and YTD return 11.74%.

Data as of July 2011

PBJ Top Ten Holdings & Weightings

  1. Starbucks Corporation (SBUX):  5.14%
  2. PepsiCo, Inc. (PEP):  5.07%
  3. Mead Johnson Nutrition Company (MJN):  5.07%
  4. Yum Brands, Inc. (YUM):  5.02%
  5. H.J. Heinz Company (HNZ):  4.98%
  6. McDonald's Corporation (MCD):  4.97%
  7. General Mills, Inc. (GIS):  4.86%
  8. Coca-Cola Company (KO):  4.71%
  9. Darling International, Inc. (DAR):  3.36%
  10. Krispy Kreme Doughnut Corporation (KKD):  3.27%

ECON (EG Shares DJ Emerging Market Consumer ETF) follows the Dow Jones Emerging Markets Titans Index which is a market cap weighted index of the 30 leading emerging market companies in both consumer goods and services.  The fund was launched in September 2010. The expense ratio is .85%. AUM equal $225 million and average daily trading volume is 83K shares. As of late July 2011 the annual dividend was $.02 making the current yield negligible and YTD return 2.79%.

Data as of July 2011

ECON Top Ten Holdings & Weightings

  1. AmBev ADR (ABV):  10.30%
  2. Wal-Mart De Mexico SAB de CV (WALMEX V):  6.93%
  3. Naspers, Ltd. (NPN):  6.09%
  4. Astra International Tbk:  5.94%
  5. ITC Ltd. (500875):  5.75%
  6. Grupo Televisa SA (TLEVISA CP): 5.56%
  7. Fomento Económico Mexicano, S.A.B. De C.V. (FEMSA UBD):  4.82%
  8. Falabella Sociedad Anomina Comercial E Industrial:  4.63%
  9. BRF - Brasil Foods SA ADR (BRFS):  4.62%
  10. Cencosud SA:  4.26%

IPS (SPDR S&P International Consumer Staples ETF) follows the S&P Developed ex-U.S. BMI Consumer Staples Sector Index which represents non-U.S. consumer staples companies with market capitalizations of at least $100 million. The fund was launched in July 2008. The expense ratio is .50%. AUM equal $19 million and average daily trading volume is just under 10K shares. As of late July 2011 the annual dividend was $.67 making the current yield 2.05% and YTD return 5.27%.

Data as of July 2011

IPS Top Ten Holdings & Weightings

  1. Nestle SA (NESN):  16.28%
  2. British American Tobacco PLC (BATS):  6.21%
  3. Unilever NV (UNA):  4.29%
  4. Diageo PLC (DGE):  3.95%
  5. Tesco PLC (TSCO):  3.75%
  6. Danone (BN):  3.74%
  7. Anheuser-Busch InBev SA (AHBIF):  3.48%
  8. Unilever PLC (ULVR):  3.42%
  9. Wesfarmers Limited (WES):  3.39%
  10. Woolworths Limited (WOW):  3.29%

The consumer staples sector has enjoyed a positive first half of 2011 particularly as it remains a defensive sector for investors when markets became more volatile and difficult. Internationally an expanding consumer sector marked by positive demographics has and will help this sector expand.  

There is a lot to choose from in terms of indexes linked to ETFs. Some are passive and duplicative relatively. It's essential to remember it's really a game of battleship for sponsors seeking to be first to a sector space or just being competitive in the space. This is their business interest apart from your investment interest. You should always ignore their interests and align your choices with what serves your objectives best.

Investors should note that in a rising market particularly ETFs linked to enhanced issues will tend to outperform conventional index linked issues. I've not done enough analysis to determine their relative performance during down market periods.

New ETFs from highly regarded and substantial new providers are also being issued. These may include Charles Schwab's ETFs and Scottrade's Focus Shares which both are issuing new ETFs with low expense ratios and commission free trading at their respective firms. These may also become popular as they become seasoned. 

For further information about portfolio structures using this or other ETFs see .

You may address any feedback to:   


(Source for holding data is from ETF Database and from various sponsors.)
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Dave Fry is founder and publisher of ETF Digest, Dave's Daily blog and the best-selling book author of Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management, published by Wiley Finance in 2008. A detailed bio is here: Dave Fry.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FXG $46.46 0.89%
RHS $120.41 0.15%
KXI $97.32 0.00%
IYK $112.41 0.25%
XLP $52.40 0.08%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs