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Top 10 Consumer Staples ETFs

Stocks in this article: XLPVDCIYKFXGPSLKXIPBJ

#3: iShares Dow Jones U.S. Consumer Goods Sector ETF (IYK)

IYK follows the Dow Jones U.S. Consumer Goods Index. The fund was launched in June 2006. The expense ratio is .48%. AUM equal $336 million and average daily trading volume is 71K shares. As of the end of November 2011 the annual dividend yield was 2.20% and YTD return of .65%.

An alternative choice is FCD (FocusShares Morningstar Consumer Defensive ETF) which is a venture of Scottrade and Morningstar featuring a lower expense ratio (.19%) and no trading commissions for Scottrade customers. You'll no doubt see something similar coming from Schwab soon enough.

IYK Top Ten Holdings & Weightings

Data as of November, 2011

  1. The Procter & Gamble Co (PG): 12.18%
  2. The Coca-Cola Co (KO): 10.07%
  3. Philip Morris International, Inc. (PM): 8.50%
  4. PepsiCo Inc (PEP): 6.94%
  5. Kraft Foods Inc (KFT): 3.99%
  6. Altria Group Inc. (MO): 3.97%
  7. Colgate-Palmolive Company (CL): 3.05%
  8. Ford Motor Co (F): 3.02%
  9. Monsanto Company (MON): 2.69%
  10. Nike, Inc. B (NKE): 2.52%

#4: First Trust Consumer Staples ETF (FXG)

 FXG follows the StrataQuant Consumer Staples Index which is another "enhanced" index which employs the AlphaDEX stock selection methodology to select consumer staples stocks from the Russell 1000. The fund was launched in May 2007. AUM equal $184 million with average daily trading volume of 171K shares. As of the end of November 2011 the annual dividend yield was .82% and YTD return of 6.44%.

Note: I like the structure of enhanced index ETFs for the most part given their trait of demonstrating outperformance on the upside but underperformance on the downside. This makes for better trading opportunities using indicators like DeMark.  Of the "enhanced" indexes FXG seems to offer the best trading opportunities. The YTD rate of return in July was 19.50% but DeMark offered good trades to capture most of this return before markets turned over.

FXG Top Ten Holdings & Weightings

Data as of November, 2011

  1. Green Mountain Coffee Roasters, Inc. (GMCR): 5.55%
  2. Herbalife, Ltd. (HLF): 4.96%
  3. Tyson Foods, Inc. A (TSN): 4.77%
  4. Smithfield Foods, Inc. (SFD): 4.75%
  5. Hansen Natural Corporation (HANS): 4.60%
  6. Bunge Ltd (BG): 4.51%
  7. Whole Foods Market, Inc. (WFM): 4.39%
  8. Archer-Daniels Midland Company (ADM): 4.39%
  9. Hormel Foods Corporation (HRL): 3.87%
  10. Corn Products International, Inc. (CPO): 3.78%

#5: PowerShares Dynamic Consumer Staples ETF (PSL)

PSL follows the Dynamic Consumer Staples Sector Intellidex Index which is considered an "enhanced" index since it uses proprietary quantitative analysis to more actively deploy and manage constituents. Of some interest are the more even weightings of holdings versus others. The fund was launched in October 2010. The expense ratio is .60%. AUM equal $36 million with average daily trading volume of 3.7K shares. As of the end of November 2011 the annual dividend yield was 1.80% and YTD return was 1.1%.

Note: As above, I like the structure of enhanced index ETFs for the most part given outperformance on the upside but underperformance on the downside. This makes for better trading opportunities using indicators like DeMark; however, given the low AUM and trading volume achieving effective trades requires order entry precision and may be restrained by low trading volume.

PSL Top Ten Holdings & Weightings

Data as of November, 2011

  1. Costco Wholesale Corporation (COST): 2.73%
  2. Kimberly-Clark Corporation (KMB): 2.69%
  3. Reynolds American Inc (RAI): 2.63%
  4. Altria Group Inc. (MO): 2.62%
  5. The Procter & Gamble Co (PG): 2.60%
  6. Colgate-Palmolive Company (CL): 2.59%
  7. Kellogg Company (K): 2.57%
  8. Kraft Foods Inc (KFT): 2.54%
  9. The Coca-Cola Co (KO): 2.53%
  10. Wal-Mart Stores Inc (WMT): 2.52%

More from ETF Digest

#6: iShares S&P Global Consumer Staples ETF (KXI)

KXI follows the S&P Global Consumer Staples Index which includes the U.S. and other nation's consumer staples issues. The fund was launched in September 2006. The expense ratio is .48%. AUM equal $430 million and average daily trading volume is 47K shares. As of the end of November 2011 the annual dividend yield was 2.41% and YTD return 1.62%.

 

KXI Top Ten Holdings & Weightings

Data as of November, 2011

  1. Nestle SA (NESN): 8.22%
  2. The Procter & Gamble Co (PG): 7.11%
  3. The Coca-Cola Co (KO): 6.36%
  4. Philip Morris International, Inc. (PM): 4.97%
  5. PepsiCo Inc (PEP): 4.04%
  6. Wal-Mart Stores Inc (WMT): 4.03%
  7. British American Tobacco PLC (BATS): 3.71%
  8. Kraft Foods Inc (KFT): 2.52%
  9. Unilever NV (UNA): 2.43%
  10. Altria Group Inc. (MO): 2.31%

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