ETF Trends
04-30-2008, 01:40 PM
ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)
http://www.etftrends.com/images/2008/04/28/2741618533.jpeg (http://etftrends.typepad.com/photos/uncategorized/2008/04/28/2741618533.jpeg)Consumers who are worried or skeptical about the economy may want to turn to exchange traded funds (ETFs) holding stock of companies that supply household necessities.
Consumer staples include toothpaste, detergent, toilet paper and batteries. In other words, products we can't live without. Consumer staples typically have a consistent demand, and are considered defensive investment with lower portfolio risk. No matter how tight money is, you are not likely to skimp on this stuff when money is low, much less go without it.
Could these funds benefit from those rebate checks going out? Possibly - the rising price of fuel is cutting into the funds available for these necessities. Consumers may see the extra money as an opportunity to stock up.
The St. Louis Post-Dispatch says (http://www.stltoday.com/stltoday/business/stories.nsf/yourmoney/story/378259543BFBF22886257435007B4A31?OpenDocument) that the best reason to invest in this sector now is if you think the economy will worsen. Keep in mind these ETFs are down for the year, yet above their 200-day moving average. The household names, such as Proctor and Gamble (PG (http://finance.yahoo.com/q?s=PG)), are relied upon and are also becoming more global in their reach.
Among the ETFs that grant access to this sector are:
Consumer Staples Select SPDR (XLP (http://finance.yahoo.com/q?s=xlp)): PG 17.1%; down 1.9% year-to-date
Vanguard Consumer Staples (VDC (http://finance.yahoo.com/q?s=xlp)): PG 14.4%; down 2.6% year-to-date
iShares S&P Global Consumer Staples (KXI (http://finance.yahoo.com/q?s=kxi)): PG 9.2%; down 3.2% year-to-date
First Trust Consumer Staples AlphaDex (FXG (http://finance.yahoo.com/q?s=fxg)): PG 4.4%; down 4.9% year-to-date
PowerShares Dynamic Consumer Staples (PSL (http://finance.yahoo.com/q?s=psl)): down 1.3% year-to-date
Rydex S&P Equal Weight Consumer Staples (RHS (http://finance.yahoo.com/q?s=rhs)): down 4.1% year-to-date Read the disclosure (http://www.etftrends.com/rydex-disclaimer.html), as Tom Lydon is a board member of Rydex Funds.
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/280946998/etfs-for-worrie.html)
http://www.etftrends.com/images/2008/04/28/2741618533.jpeg (http://etftrends.typepad.com/photos/uncategorized/2008/04/28/2741618533.jpeg)Consumers who are worried or skeptical about the economy may want to turn to exchange traded funds (ETFs) holding stock of companies that supply household necessities.
Consumer staples include toothpaste, detergent, toilet paper and batteries. In other words, products we can't live without. Consumer staples typically have a consistent demand, and are considered defensive investment with lower portfolio risk. No matter how tight money is, you are not likely to skimp on this stuff when money is low, much less go without it.
Could these funds benefit from those rebate checks going out? Possibly - the rising price of fuel is cutting into the funds available for these necessities. Consumers may see the extra money as an opportunity to stock up.
The St. Louis Post-Dispatch says (http://www.stltoday.com/stltoday/business/stories.nsf/yourmoney/story/378259543BFBF22886257435007B4A31?OpenDocument) that the best reason to invest in this sector now is if you think the economy will worsen. Keep in mind these ETFs are down for the year, yet above their 200-day moving average. The household names, such as Proctor and Gamble (PG (http://finance.yahoo.com/q?s=PG)), are relied upon and are also becoming more global in their reach.
Among the ETFs that grant access to this sector are:
Consumer Staples Select SPDR (XLP (http://finance.yahoo.com/q?s=xlp)): PG 17.1%; down 1.9% year-to-date
Vanguard Consumer Staples (VDC (http://finance.yahoo.com/q?s=xlp)): PG 14.4%; down 2.6% year-to-date
iShares S&P Global Consumer Staples (KXI (http://finance.yahoo.com/q?s=kxi)): PG 9.2%; down 3.2% year-to-date
First Trust Consumer Staples AlphaDex (FXG (http://finance.yahoo.com/q?s=fxg)): PG 4.4%; down 4.9% year-to-date
PowerShares Dynamic Consumer Staples (PSL (http://finance.yahoo.com/q?s=psl)): down 1.3% year-to-date
Rydex S&P Equal Weight Consumer Staples (RHS (http://finance.yahoo.com/q?s=rhs)): down 4.1% year-to-date Read the disclosure (http://www.etftrends.com/rydex-disclaimer.html), as Tom Lydon is a board member of Rydex Funds.
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/280946998/etfs-for-worrie.html)