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Top 10 Consumer Staples ETFs

#7: PowerShares Dynamic Food & Beverage Portfolio (PBJ)

PBJ 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 $187 million and average daily trading volume is 221K shares. As of the end of November 2011 the annual dividend yield was 1.042.24% and YTD return -1.39%. 11.74%.

Note: Here's another enhanced index ETF with good trading possibilities given outperformance on the upside and underperformance on the downside. To us this means more not less trading is necessary to maintain good gains. In June/July 2011 the fund was up 11.74% but current figures put it slightly negative. This could be prevented by following some DeMark Indicators as we suggest to premium members.

PBJ Top Ten Holdings & Weightings

Data as of November, 2011

  1. Mead Johnson Nutrition Company (MJN): 5.16%
  2. Kraft Foods Inc (KFT): 5.06%
  3. H.J. Heinz Company (HNZ): 5.05%
  4. The Coca-Cola Co (KO): 5.04%
  5. McDonald's Corporation (MCD): 4.99%
  6. The Kroger Co (KR): 4.95%
  7. Green Mountain Coffee Roasters, Inc. (GMCR): 4.85%
  8. Archer-Daniels Midland Company (ADM): 4.56%
  9. Fresh Market, Inc. (TFM): 3.21%
  10. Whole Foods Market, Inc. (WFM): 2.98%

#8: Rydex S&P Equal Weight Consumer Staples ETF (RHS)

RHS (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 $26 million with average daily trading volume of 10K shares. The fund has struggled from a marketing perspective given company ownership changes which left it adrift for a period. This should change given new more dynamic ownership. As of the end of November 2011 the annual dividend yield was 2.07% and YTD return 4.48%.

RHS Top Ten Holdings & Weightings

Data as of November, 2011

  1. Beam Inc (BEAM): 2.66%
  2. Tyson Foods, Inc. A (TSN): 2.60%
  3. Dean Foods Company (DF): 2.52%
  4. Safeway Inc. (SWY): 2.52%
  5. Wal-Mart Stores Inc (WMT): 2.51%
  6. Brown-Forman Corporation B (BF.B): 2.50%
  7. ConAgra Foods, Inc. (CAG): 2.49%
  8. Campbell Soup Co (CPB): 2.48%
  9. Hormel Foods Corporation (HRL): 2.47%
  10. Constellation Brands Inc. A (STZ): 2.47%

#9: SPDR S&P International Consumer Staples ETF (IPS)

 

IPS 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 $18 million and average daily trading volume is just under 15K shares. As of the end of November 2011 the annual dividend yield was 2.88% and YTD return -3.04%.

Note: Investors do wish to extend investments overseas but when economic and market conditions are poor at home and abroad they tend to retrench naturally. Therefore a sector such as this will need more time.

 

IPS Top Ten Holdings & Weightings

Data as of November, 2011

  1. Nestle SA (NESN): 15.96%
  2. British American Tobacco PLC (BATS): 6.82%
  3. Unilever NV (UNA): 4.72%
  4. Diageo PLC (DGE): 4.18%
  5. Tesco PLC (TSCO): 3.92%
  6. Unilever PLC (ULVR): 3.72%
  7. Danone (BN): 3.66%
  8. Wesfarmers Limited (WES): 3.63%
  9. Anheuser-Busch InBev SA (AHBIF): 3.50%
  10. Imperial Tobacco Group PLC (IMT): 3.07%

#10 EG Shares Emerging Markets Dividend ETF (ECON)

 

ECON 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 $234 million and average daily trading volume is 97K shares. As of the end of November 2011 the annual dividend yield was negligible and YTD return -12.31%.

Note: ECON is a relatively new issue in a promising focused on a promising sector in the world especially in terms of friendly demographics for consumers. However, as with other overseas markets when conditions at home and abroad are unsettled it's harder to get investors interested in more distant and exotic themes. More seasoning is needed along with stability.

ECON Top Ten Holdings

Data as of November, 2011

  1. Companhia de Bebidas das Americas Ambev ADR (ABV): 12.03%
  2. Astra International Tbk (ASII): 7.52%
  3. Wal - Mart de Mexico, S.A.B. de C.V. (WALMEX V): 7.38%
  4. BRF - Brasil Foods SA ADR (BRFS): 6.77%
  5. Fomento Económico Mexicano, S.A.B. De C.V. (FEMSA UBD): 5.96%
  6. Naspers Ltd (NPN): 5.67%
  7. Grupo Televisa, S.A. (TLEVISACPO): 5.63%
  8. S.A.C.I. Falabella (FALABELLA): 5.28%
  9. Cencosud SA (CENCOSUD): 4.82%
  10. Genting Berhad: 3.82%

This gives you a handy summary of U.S. and global consumer staple sectors from which to choose. We've tried to include a variety of popular issues along with a few more exotic offerings for your consideration. Once again, the sector generally is considered more defensive and conservative overall.

It's also important to remember that ETF sponsors have their own competitive business interests when issuing products which may not necessarily align with your investment needs. 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 technical indicators like DeMark and other indicators, take a free 14-day trial at ETF Digest . Follow us on Twitter and Facebook as well and join our group conversations.

You may address any feedback to: feedback@etfdigest.com   

The ETF Digest has no current positions in the featured ETFs.

(Source for data is from ETF sponsors and various ETF data providers)

 

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.

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