Consumer Staples Sector Equity

Consumer staples mutual funds and ETFs primarily invest in consumer staples stocks,... Consumer staples mutual funds and ETFs primarily invest in consumer staples stocks, which tend to goods and services that households need to use on a regular basis. Examples of consumer staple products include food and beverages, household cleaning products, toiletry items, and beauty products. These funds can be actively or passively managed, and may own a mix of small, mid, or large cap stocks. The consumer staples sector is considered to be more defensive than the consumer discretionary sector, which tends to focus on non-essential goods and services. In a recession, for example, consumers will usually stop buying non-essential goods and services before they cut back on essential needs. This means that the revenues and profits of consumer staples stocks tend to be steadier and less cyclical than those of consumer discretionary companies. Consumer staples mutual funds and ETFs are defensive investments that can be appropriate for more conservative investors. They won’t appreciate as much as consumer discretionary sector funds in an economic expansion but may hold their value better in an economic downturn. Due to their non-cyclical nature and steady revenue base, consumer staples companies often offer attractive ongoing dividend payments to investors, which can also make them attractive investments. Last Updated: 11/04/2024 View more View less

Consumer staples mutual funds and ETFs primarily invest in consumer staples stocks, which tend to goods and services that households need to use on a regular basis. Examples of consumer staple products include... Consumer staples mutual funds and ETFs primarily invest in consumer staples stocks, which tend to goods and services that households need to use on a regular basis. Examples of consumer staple products include food and beverages, household cleaning products, toiletry items, and beauty products. These funds can be actively or passively managed, and may own a mix of small, mid, or large cap stocks. The consumer staples sector is considered to be more defensive than the consumer discretionary sector, which tends to focus on non-essential goods and services. In a recession, for example, consumers will usually stop buying non-essential goods and services before they cut back on essential needs. This means that the revenues and profits of consumer staples stocks tend to be steadier and less cyclical than those of consumer discretionary companies. Consumer staples mutual funds and ETFs are defensive investments that can be appropriate for more conservative investors. They won’t appreciate as much as consumer discretionary sector funds in an economic expansion but may hold their value better in an economic downturn. Due to their non-cyclical nature and steady revenue base, consumer staples companies often offer attractive ongoing dividend payments to investors, which can also make them attractive investments. Last Updated: 11/04/2024 View more View less