#2 - Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP)
As interest rates recently moved lower, investors should consider the sectors that are most likely to benefit from this trend continuing. As the pressure on consumers eases, consumer staples stocks will likely become more attractive. That makes the Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) a good name to consider.
The fund tracks the stocks in the Consumer Staples Select Sector index. Like the index, the fund is market-cap-weighted to a list of 38 consumer staples stocks that are part of the S&P 500 index.
As of September 2024, the fund is heavily concentrated in hypermarkets & supercenters as well as household products. Not surprisingly, the top three holdings in the fund by percentage are Procter & Gamble Co. (NYSE: PG), Costco Wholesale Corp. (NASDAQ: COST), and Walmart Inc. (NYSE: WMT).
Like the SPY, the XLP is passively managed with an expense ratio of 0.09%. The fund pays a quarterly dividend with a yield of 2.20%.
About Consumer Staples Select Sector SPDR Fund
Consumer Staples Select Sector SPDR Fund (the Fund) seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in The Consumer Staples Select Sector Index (the Index).The Fund typically invests in substantially all of the securities represented in the Index in approximately the same proportions as the Index.
Read More - Current Price
- $82.65
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 1 Buy Ratings, 18 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $84.50 (2.2% Upside)
