ETF Research and Analysis

by Adam McCullough, CFA
Suitability
Consumer Staples Select Sector SPDR XLP offers market-cap-weighted exposure to the largest U.S. consumer staples sector stocks. The fund’s low expense ratio and low turnover should benefit investors, but its lack of diversification   Read more 

Bull Case

This fund charges one of the lowest fees in the consumer defensive category.
The fund’s turnover and market impact costs are low because it weights its holdings by market capitalization.
This fund is less sensitive to the business cycle than the S&P 500. It should outperform the market during downturns. Read more 

Bear Case

This concentrated portfolio exposes investors to considerable firm-specific risk, which the market usually does not compensate.
This portfolio excludes many mid- and small-cap consumer staples stocks. The larger consumer staples companies it holds tend to be more sensitive to currency fluctuations. Read more 

2 Favorite ETFs for Foreign Diversification 
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