It has already been 6 years since US consumer staples have started to beat S&P

2015-02-18 12:02:58

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Since the first quarter of 2009, some consumer staples ETFs recorded cumulative abnormal returns trends (CARTs) of even 100%, relative to S&P, considering beta value.


Such great results have been achieved by First Trust Consumer Staples AlphaDEX® Fund [FXG] and Rydex S&P Equal Weight Consumer Stap ETF [RHS]. FXG was also the best during the last 30 months, recording a CART of 50%. Since the beginning of August 2014 FXG and RHS have made 13% and PowerShares Dynamic Consumer Staples [PSL] has even been slightly better. During the last week of January there were slight losses but February has brought some uptrend again. Tuesday and Wednesday brought CARTs for all US consumer staples ETFs.

This week the market is bullish but future trends are hard to predict. Consumer Staples' P/E Ratio has been growing but this sector is the only one with an underweight recommendation from AltaVista Research. However, BlackRock remains neutral on consumer stocks. Russ Koesterich, CFA of BlackRock, claims: "Although lower gasoline and energy prices are a tailwind for consumers, over the long term spending is driven by growth in disposable income. With interest rates low and stock returns likely to be more muted, wage gains will need to drive income growth and here longer-term factors may dampen the cyclical upswing.",U.S./max/absolute


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