Consumer Staples ETF ‘XLP’: A Strategic Investment for Access to Essential Goods Market
Denver, CO
|
November 02, 2023 09:00 AM Eastern Daylight Time
XLP isn't just another fund; it's your personal gateway into the S&P 500's consumer staples sector.
Holding shares in household names like Procter & Gamble, Pepsi, Costco, and Coca-Cola – XLP is comprised of the very companies that keep the world's pantries stocked and fridges full. These companies form the backbone of the consumer staples sector, producing goods that are consumed regardless of where we are in the economic cycle.
Welcome to Select Sector SPDR’s Consumer Staples ETF (XLP) – your opportunity to invest in the everyday essentials that fuel our lives.
Gain Exposure to the Everyday Essentials Market
Investing in XLP is akin to taking a stroll through the aisles of a grocery store. The fund's holdings span across industries such as food and staples retailing, beverages, food products, tobacco, household goods, and personal care products. This wide array of sectors represents the diverse range of goods that consumers rely on daily.
Since its launch in 1998, XLP has amassed over $16 billion in assets under management and maintains a low expense ratio of 0.10%*. It provides a cost-effective solution for investors seeking to access large-cap companies that cater to fundamental consumer needs.
A Unique Investment Opportunity Beyond Market Volatility
While XLP has proven its resilience during uncertain economic times, it also presents a compelling investment case during periods of economic stability. Consumer staples are everyday items that households continually purchase, making the companies that produce these goods potentially more immune to economic fluctuations.
XLP’s top holdings** are Procter & Gamble (14.58%), Costco (10.62%), Pepsi (9.89%), Walmart (9.68%), and Mondelez International (4.62%).
By investing in XLP, investors gain exposure to a sector characterized by steady demand. This ETF offers a unique way to invest in the ongoing consumption of essential goods, making it a potential addition to any diversified investment portfolio.
DISCLAIMER: This is a work of research and should not be taken as investment or financial advice. Therefore, Select Sector SPDRs or the publisher is not liable for any decision made based on the publication.
About the Company:
Select Sector SPDR ETFs offer flexibility and customization opportunities. Many investors have similar outlooks, but no two are exactly alike. Select Sector SPDR ETFs let investors select the sectors that best meet their investment goals.
*Ordinary brokerage fees apply
**Holdings, Weightings & Assets as of 9/30/23 subject to change
DISCLOSURES
The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Index figures do not reflect any fees, expenses or taxes. An investor should consider investment objectives, risks, fees and expenses before investing.
One may not invest directly in an index.
Transparent ETFs provide daily disclosure of portfolio holdings and weightings
All ETFs are subject to risk, including loss of principal. Sector ETF products are also subject to sector risk and nondiversification risk, which generally will result in greater price fluctuations than the overall market. Diversification does not eliminate risk.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF (732-8673) or visit www.sectorspdrs.com. Read the prospectus carefully before investing.
ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is distributor for the Select Sector SPDR Trust.
Media Contact:
Company: Select Sector SPDRs
Contact: Dan Dolan*
Address: 1290 Broadway, Suite 1000, Denver, CO 80203
Country: United States
Email: dan.dolan@sectorspdrs.com
Website: https://www.sectorspdrs.com/
*Dan Dolan is a Registered Representative of ALPS Portfolio Solutions Distributor, Inc. ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is the distributor for the Select Sector SPDR Trust.
SEL006990 EXP 1/31/24
Contact Details
Dan Dolan
+1 203-935-8103
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