ETF Research and Analysis

by Adam McCullough, CFA
Vanguard Consumer Staples offers market-cap-weighted exposure to U.S. consumer staples sector stocks across the market-cap spectrum. The fund’s low expense ratio and low turnover should benefit investors, but its concentrated   Read more 

Bull Case

This is one of the cheapest options in the consumer defensive category.
The fund’s turnover and market impact costs are low because it weights its holdings by market cap.
This fund is less sensitive to the business cycle than the broader equity marker. It should hold up better during market during downturns. Read more 

Bear Case

Although this portfolio invests in nearly all U.S. consumer staples stocks, it skews toward larger consumer staples companies, which tend to be more sensitive to foreign currency movements than their smaller counterparts.
This concentrated portfolio exposes investors to firm-specific risk, which the market usually does not compensate. Read more 

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