ETF Research and Analysis

by Robert Goldsborough
Consumer Staples Select Sector SPDR is suitable as a complementary satellite holding to a diversified portfolio. This exchange-traded fund, which offers exposure to mega-cap household names whose products consumers generally   Read more 

Bull Case

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 acquisitors the opportunity to get a better handle on the local consumer without having to incur significant financial leverage.
Emerging markets continue to represent a longer-term growth opportunity for many of the firms held in this ETF. Read more 

Bear Case

Some of the fund's holdings, such as tobacco stocks, have been or could be the targets of costly product liability suits.
The retailers held in this ETF operate in very competitive environments that can make margin expansion difficult.
Amazon's rollout of its online grocery service could be a disruptive event for the retailers and consumer products companies held in this ETF. Read more 

Foreign-Stock Exposure Without the Currency Risk 
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