E Best Long-Term Performance Consumer Staples Sector ETFs

  • The oldest Consumer Staples Sector ETF has outperformed an S&P 500 index fund by 0.13% CAGR while being less volatile and having a low correlation to the US equity markets
  • There are 16 ETFs to pick from in the Consumer Staples category
  • 8 of these Consumer Staples Sector ETFs have been available for 10 years or longer
  • This article focuses on the long-term performance of these 8 older ETFs

XLP vs S&P 500 Index Fund: January 1999 - September 2019

 

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XLP vs SPY: December 22, 1998 - October 25, 2019

 

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There are currently 16 ETFs available in the Morningstar Consumer Defensive category. 8 of these have inception dates before October 27, 2009. I have compared all 8 of these older ETFs head-to-head using the back-testing tools at Koyfin and Portfolio Visualizer. The chart below shows how they ranked based on long-term performance only.

 

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The 4 best performing Consumer Staples Sector ETFs were RHS, VDC, PSL, and XLP. The charts below depict how these ETFs have performed compared to each other in the past.

RHS vs VDC vs PSL vs XLP: December 2006 - September 2019

 

RHS vs VDC vs PSL vs XLP vs SPY: November 7, 2006 - October 25, 2019

 

RHS vs VDC: November 7, 2006 - October 25, 2019

 

VDC vs PSL: October 12, 2006 - October 25, 2019

 

PSL vs XLP: October 12, 2006 - October 25, 2019

 

Here are the stated objectives of the top 4 performing Consumer Staples Sector ETFs:

RHS - The Invesco S&P 500® Equal Weight Consumer Staples ETF (Fund) is based on the S&P 500® Equal Weight Consumer Staples Index (Index). The Fund will invest at least 90% of its total assets in common stocks that comprise the Index. The Index equally weights stocks in the consumer staples sector of the S&P 500® Index. The Fund and the Index are rebalanced quarterly.

VDC - Vanguard Consumer Staples ETF. Seeks to track the performance of a benchmark index that measures the investment return of stocks in the consumer staples sector. Passively managed, using a full-replication strategy when possible and a sampling strategy if regulatory constraints dictat RHS e. Includes stocks of companies that provide direct-to-consumer products that, based on consumer spending habits, are considered nondiscretionary.

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Disclosure: 

We currently own shares of RHS and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform you own due diligence or seek the ...

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