XLP Stock Recent News

Looking for broad exposure to the Consumer Staples - Broad segment of the equity market? You should consider the Consumer Staples Select Sector SPDR ETF (XLP), a passively managed exchange traded fund launched on 12/16/1998.

August has been a turbulent month for financial markets. Some strategists believe that volatility may continue in the coming days if the U.S. economic data points come in at unstable.

When markets correct, it is a good time to revisit which equity market sectors are “defensive” themes. Certain products and services are nondiscretionary in nature that we cannot live without.

The Consumer Staples Select Sector SPDR® Fund ETF is a good defensive investment option in volatile markets, with potential for growth and resilience during economic downturns. The XLP fund holds 38 companies, with top positions in Procter & Gamble, Costco, Walmart, and Coca-Cola, providing diversification within the sector. Comparison with the Vanguard Consumer Staples ETF shows XLP has slightly underperformed, but both are solid options for exposure to consumer staples.

If you're interested in broad exposure to the Consumer Staples - Broad segment of the equity market, look no further than the Consumer Staples Select Sector SPDR ETF (XLP), a passively managed exchange traded fund launched on 12/16/1998.

The Consumer Staples Select Sector SPDR Fund ETF offers exposure to recession-resistant companies that provide household products and basic items. This ETF has a low expense ratio and has delivered annual returns of 6.8% since its inception in 1988. The top holdings of this ETF include Procter & Gamble, Costco Wholesale, and Walmart, offering a defensive position for investors.

Investors are flocking to defensive sectors like utilities and consumer staples in search of cheap stocks. Amid such scenario, these ETFs could be solid picks to tap the sector rotation.

For investors seeking momentum, Consumer Staples Select Sector SPDR Fund XLP is probably on the radar. The fund just hit a 52-week high and is up 19% from its 52-week low price of $65.18/share.

XLP provides exposure to defensive stories from the consumer staples sector. The sector is less susceptible to economic cycles, but it doesn't attract significant investor interest. I am rating XLP with a Hold, given the potential to provide up to a 10% return.

UBS pointed out that rapid earnings growth recorded by the big six tech giants over the past year is now ebbing. Hence, this could be the time to bet on non-cyclical sectors.