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by dharmatech
1518 days ago
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> In that economic environment, consumer staples which do their own production and have the ability to quickly respond to inflation are favoured. I'm in a sector ETF for this. What are some example ETFs in that space? Commodities oriented ETFs? ---------- UPDATE ---------- OK, nevermind. :-) Googled "consumer staples etf" and a bunch of examples came up. https://www.investopedia.com/top-performing-consumer-staples... ---------- UPDATE ---------- Top 10 holdings of IYK Procter & Gamble PG 16.91% Coca-Cola KO 11.10% PepsiCo PEP 10.40% Philip Morris PM 6.95% CVS CVS 4.04% Altria MO 3.60% Mondelez MDLZ 3.40% Colgate CL 3.00% Archer Daniels Midland ADM 2.44% Kimberly-Clark KMB 2.34% ---------- Consumer staples -> consumer poisons. This leads to upward pressure in healthcare. |
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When you're sampling the top-10 you get a biased set - "sin" stocks usually face increased consolidation pressure (certainly true for PM, MO, KO). If you expand your view to a full breakdown, a consumer staples ETF broadly represents "stuff people buy at supermarkets".
ETFs based on indices do not have opinions or intelligent design, they attempt to accurately represent a well-defined sector or thesis. A lot of people buy a lot of unhealthy stuff, so that shows up here.
If this is important to you, could I suggest screened indices (https://www.ishares.com/us/products/investment-goals#/funds?...) or a social impact fund (https://www.ishares.com/us/products/286007/)?