Defensive Sector ETFs For Turbulent Times

My last article profiled ETF opportunities in the Biotech subindustry group. They were all top-rated with 5 checks from ValuEngine, following recent pullbacks.  All had been characterized by above-average market volatility and above-average returns during the past 10 years. All had very different construction and maintenance methodologies.

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This week’s featured US equity ETFs, all focused on the US Consumer Staples Sector, are also projected to outperform the market. The similarities end there. These all get a more modest buy recommendation, 4 checks out of a possible 5.

Other differences are more striking. All 3 ETFs had below-market returns during the past 10 years, offset to an extent by well-below-average volatility and Beta. The three ETFs have similar methodologies and are dominated by the same 10 holdings.

We selected:

XLP, The Consumer Staples Select Sector SPDR ETF;

FSTA, Fidelity MSCI Consumer Staples Index ETF; and

VDC, Vanguard Consumer Staples ETF.

The following table provides much of the pertinent information as of March 31, 2021.  VOO, the Vanguard S&P 500 ETF, is provided for Comparative benchmarking.XLP

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Disclaimer: Always read the fact sheets and/or summary prospectus before buying any ETF.  Past performance is not necessarily indicative of future results.

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