ETF Talk: Consumer Staples Offer Resilience

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

In the face of economic uncertainty, cautious investors can find a place of refuge in the consumer staples sector, which features companies involved in businesses such as food, beverages, tobacco, and other household items. In particular, I have my eye on the Vanguard Consumer Staples Fund (VDC). This exchange-traded fund (ETF) lets you invest in large companies, which tend to be stable performers in turbulent economic climates. Many of the fund’s holdings, e.g. Coca-Cola and Wal-Mart, provide low-cost products that help the sector deliver consistent revenues each year.

Advertisement.

As such, the fund offers the potential for stability and capital appreciation as the American economy continues to recuperate. VDC is up 9.26%, year-to-date. Having started the year at $81.49, the fund has continued to rise steadily throughout the year, closing at $88.77 on July 10.

The Vanguard Consumer Staples ETF (VDC) seeks to track the performance of a benchmark index that measures the investment return of stocks in the consumer staples sector. Geographically, the fund is 100% invested in U.S. companies. My hope is that as the American economy begins to improve, the consumer staples sector will rise along with it.

Advertisement.

As of May 31, VDC’s top five holdings were: Procter & Gamble Co (PG), Coca Cola Co (KO), Philip Morris Intl Inc (PM), Wal-Mart Stores Inc (WMT) and Pepsico Inc (PEP).

VDC offers investors a way to invest in domestic companies but still maintain relative stability. However, the fund is 100% invested in the consumer staples companies, which means its value is entirely at the mercy of the sector’s ups and downs.

Exclusive  ETF Talk: Spotlight on Spot ARK 21Shares Bitcoin ETF

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please check out my ETF Trader advisory service. As always, I am happy to answer your questions about ETFs, so do not hesitate to email me by clicking here. You may see your question answered in a future ETF Talk.

Advertisement.
share on:
share on:

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE