Companies held in this fund generally have stable revenue growth and cash flows.
We expect that one use for consumer staples firms’ excess cash will be for smaller, bolt-on deals, which we view positively as they would offer the acquisitors the opportunity to get a better handle on the local consumer without having to incur significant financial leverage.
This ETF offers much more of a mid-cap tilt than do other consumer staples ETFs. As such, we believe it provides purer exposure to the U.S. consumer staples sector than do some of its peers, whose holdings include large mass retailers and conglomerates with meaningful overseas businesses. Read more