- The oldest available Consumer Staples ETF has nearly matched the return of an S&P 500 index fund over the last 19 years.
- Consumer Staples funds tend to have low correlation to broad U.S. Market funds, making a Consumer Staples ETF an excellent diversifier in a worldwide equity portfolio
- Morningstar has identified 16 ETFs as Consumer Defensive funds. Eight of these funds are 10 years old or older
The Consumer Staples Select Sector SPDR® Fund (XLP) is the oldest available consumer defensive ETF. The inception date for this fund is December 16, 1998. Since that time, this fund has nearly matched the returns of an S&P 500 index fund. While that is not very impressive, it is noteworthy that this fund has a very low correlation to the overall U.S. Markets and it has been less volatile than an S&P 500 index fund.
XLP vs S&P 500 index fund: January 1999 – October 2018
Source:Â https://www.portfoliovisualizer.com/
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