First Trust Cons. Staples AlphaDEX (ARCA: FXG)

Dernières nouvelles pour First Trust Cons. Staples AlphaDEX (ARCA:FXG)

First Trust Cons. Staples AlphaDEX

Consumer Defensive

Healthcare

Consumer Cyclical

Basic Materials

The Fund will normally invest at least 90 percent of its net assets (including investment borrowings) in the securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Index is part of the StrataQuant Series, a family of custom enhanced indices developed, maintained and owned by ICE Data Indices, LLC or its affiliates (IDI or the Index Provider). The Index Provider reserves the right to, at any time, change the number of stocks comprising the Index by adding or deleting one or more stocks, or replacing one or more stocks contained in the Index with one or more substitute stocks of its choice, if in the Index Providers discretion, such addition, deletion or substitution is necessary or appropriate to maintain the quality and/or character of the Index.

Pilgrim'S Pride

Mckesson Corp

Molson Coors Beverage Company

Seaboard Corp

Darling Ingredients, Inc.

Casey's General Stores Inc

Freshpet, Inc.

Bunge Limited

Jm Smucker Co.

Kraft Heinz Co.

First Trust Consumer Staples AlphaDEX Fund

Felix Gold Ltd

Flowers Foods, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLO#NYSE">FLO</a>) shares are trading lower on Wednesday. The company entered into a deal to acquire<a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/n42870798/flowers-foods-inc-to-acquire-simple-mills" rel="noreferrer noopener"> </a><a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/n42870798/flowers-foods-inc-to-acquire-simple-mills" rel="noreferrer noopener">Simple Mills</a><a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/n42870798/flowers-foods-inc-to-acquire-simple-mills" rel="noreferrer noopener"> for $795 million in cash</a>.
Flowers Foods secured a $795 million term loan from the Royal Bank of Canada to finance the acquisition.
Following the transaction, Flowers&#8217; proforma total net debt is expected to be around $1.9 billion, with a net debt-to-EBITDA ratio of 3.1x to 3.3x.
Flowers aims to uphold its balanced capital deployment strategy while maintaining its investment-grade debt rating.
The deal, pending customary regulatory approval, is expected to close in the first quarter of 2025.
Synergies: The acquisition of Simple Mills is expected to be immediately accretive to Flowers Foods&#8217; net sales, adjusted EBITDA growth, and <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">adjusted EBITDA margins on a proforma basis</a>.
The deal is also projected to contribute to Flowers&#8217; earnings per share starting in 2026.
Simple Mills is projected to generate 2024 net sales of $240 million, reflecting a 14% growth compared to the previous year.
This acquisition strengthens Flowers&#8217; presence in the better-for-you and snacking segments, boosting its growth and margin potential.
Once completed, Simple Mills will operate as an independent subsidiary under the leadership of founder and CEO Katlin Smith, continuing operations in Chicago, Illinois, and Mill Valley, California.
Ryals McMullian, chairman and CEO of Flowers Foods said, &#8220;With leading market positions and abundant white space for future growth, Simple Mills perfectly fits our strategy of adding compelling brands in better-for-you segments that complement and diversify our existing portfolio.&#8221;
As of Oct. 5, 2024, cash and cash<a href="https://www.benzinga.com/pressreleases/24/11/n41840173/flowers-foods-inc-reports-third-quarter-2024-results" target="_blank" rel="noreferrer noopener"> equivalents stood at $15.0 million</a>.
Investors can gain exposure to the stock via First Trust Cons. Staples AlphaDEX (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXG#NYSE">FXG</a>) and VictoryShares US Small Cap High Div Volatility Wtd ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSB#NASDAQ">CSB</a>).
FLO Price Action: Flower Foods shares are down 3.04% at $19.48 at publication Wednesday.
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Photo: T. Schneider via Shutterstock

Equities

Mid Cap

News

Global

Movers

Flowers Foods Expands Snacking Segment With $795 Million Simple Mills Acquisition

On Friday, Albertsons Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACI#NYSE">ACI</a>) voluntarily recalled 12 types of ReadyMeals and deli items supplied by Fresh Creative Foods due to potential contamination <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/b41300393/albertsons-companies-voluntarily-recalls-12-readymeals-and-store-made-deli-items-containing-a-reca" rel="noreferrer noopener">with Listeria monocytogenes</a>.
The recalled ReadyMeals and deli items were sold at Albertsons, Safeway, Jewel-Osco, Vons, and stores across several states, including California, Texas, Illinois, and Washington.
The recall was prompted by Fresh Creative Foods&#8217; action after routine tests by the U.S. Department of Agriculture&#8217;s Food Safety and Inspection Service (FSIS) detected contamination in a ready-to-eat chicken ingredient from BrucePac in Durant, Oklahoma.
Listeria can cause serious infections in vulnerable groups, including the elderly, young children, and pregnant women, leading to symptoms like fever, nausea, and, in severe cases, miscarriages.
The company said those at risk should seek medical care if they experience flu-like symptoms after consuming contaminated food.
In September, Albertsons launched Bee Lightly, which features an innovative flat bottle made from 100% recycled PET— a<a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b41003147/albertsons-companies-launches-highly-rated-bee-lightly-wines-redefining-wine-packaging" rel="noreferrer noopener"> first in the U.S. wine industry</a>.
Investors can gain exposure to the stock via First Trust Cons. Staples AlphaDEX (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXG#NYSE">FXG</a>).
Price Action: ACI shares are up 0.05% at $18.38 premarket at the last check Monday.
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41272661/why-shrinking-price-differences-between-walmart-kroger-and-albertsons-matter-to-inv" target="_blank" rel="noreferrer noopener">Why Shrinking Price Differences Between Walmart, Kroger, And Albertsons Matter To Investors</a></li>
</ul>

Large Cap

Listeria Scare Prompts Albertsons To Recall Certain Ready-To-Eat Meals In Multiple States

In a strategic move,&nbsp;Kraft Heinz&nbsp;Co&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KHC#NASDAQ">KHC</a>) is reportedly considering selling its iconic brand&nbsp;Oscar Mayer, renowned for its hot dogs, cold cuts, and bacon.
Kraft Heinz has enlisted the expertise of Bank of America and Centerview Partners to assess interest in Oscar Mayer, with estimates suggesting a potential sale price ranging between $3 billion to $5 billion. However, the transaction is not guaranteed, according to a&nbsp;<a target="_blank" href="https://www.wsj.com/business/deals/kraft-heinz-explores-sale-of-oscar-mayer-ef5e1540?mod=hp_lista_pos2" rel="noreferrer noopener">report&nbsp;</a>from the&nbsp;Wall Street Journal.
Potential buyers for Oscar Mayer could range from private equity firms to players within the food industry, the report added.
The decision aligns with Kraft Heinz&#8217;s broader strategy to adapt to evolving consumer demands under the leadership of CEO Carlos Abrams-Rivera.
Abrams-Rivera aims to revitalize Kraft Heinz&#8217;s portfolio, emphasizing healthier alternatives amid growing concerns about processed foods and health issues.&nbsp;
The company,&nbsp;with a current market capitalization of over $44 billion, seeks to invigorate its stagnant stock performance.&nbsp;Kraft Heinz stock has lost more than 9% in the last 12 months.&nbsp;
Kraft Heinz faces challenges as it endeavors to enhance the nutritional profile of its products amid fluctuating demand and rising input costs.&nbsp;
Recent&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38550728/kraft-heinz-faces-revenue-slump-in-q1-ceo-remains-optimistic-on-growth-plan" rel="noreferrer noopener">quarterly results disappointed investors</a>, reflecting the need for strategic restructuring within the company.
Once an integral part of American culture, Oscar Mayer&#8217;s potential divestment marks a pivotal moment in Kraft Heinz&#8217;s evolution, signaling its responsiveness to changing market dynamics and consumer needs.
Related: <a href="https://www.benzinga.com/general/biotech/24/04/38356901/changing-frugal-eating-habits-how-novo-nordiskeli-lillys-weight-loss-drugs-reshaping-food-spendin" target="_blank" rel="noreferrer noopener">Changing Frugal Eating Habits &#8211; How Novo Nordisk/Eli Lilly&#8217;s Weight Loss Drugs Reshaping Food Spending</a>
Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P Ultra Dividend Revenue ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDIV#NYSE">RDIV</a>) and&nbsp;First Trust Consumer Staples AlphaDEX Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXG#NYSE">FXG</a>).
Price Action: KHC shares closed higher by 0.69% at $36.49 on Monday.
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Asset Sales

Media

RDIV

Hot Dog Drama: Kraft Heinz Reportedly Ponders Oscar Mayer Sale

The grocery giant&nbsp;Kroger Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>) and entertainment powerhouse&nbsp;Walt Disney Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>)&nbsp;reportedly&nbsp;are&nbsp;in discussions to&nbsp;potentially&nbsp;offer&nbsp;Disney+ streaming service to subscribers of Kroger&#8217;s grocery delivery program, known as Kroger Boost.&nbsp;
The talks, still in early stages, suggest that Kroger Boost members may gain access to Disney+ this year without extra charge, according to a&nbsp;report from&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-05-01/kroger-in-talks-to-bring-disney-to-its-grocery-delivery-program?srnd=industries-v2&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.&nbsp;
Kroger, headquartered in Cincinnati, has been contemplating this move following customer feedback, indicating an inclination toward expanding its services.
As per the report,&nbsp;both&nbsp;Kroger and Disney have refrained from commenting on the ongoing discussions. However, Kroger emphasized its commitment to seeking new avenues to enhance value for Boost members.
Retailers in the U.S. have increasingly introduced paid membership programs to enhance customer loyalty and augment revenue streams, attempting to keep pace with e-commerce giant&nbsp;Amazon.com Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/05/38543045/walmart-takes-bold-step-with-bettergoods-food-expansion" rel="noreferrer noopener">Walmart Takes Bold Step With Bettergoods Food Expansion</a>
The report further specified&nbsp;Walmart Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) rolled out its Walmart+ program in 2020, later striking a deal for&nbsp;Paramount Global&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>) Paramount+ in 2022, while grocery delivery service Instacart started offering&nbsp;Comcast Corp&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) Peacock to its members last year.
Kroger Boost, introduced in 2022, offers two membership tiers: $59 annually or $7.99 monthly for next-day&nbsp;delivery,&nbsp;and $99 annually or $12.99 monthly for same-day delivery, with undisclosed subscriber numbers.&nbsp;
The&nbsp;program,&nbsp;exceeding&nbsp;initial&nbsp;expectations,&nbsp;and&nbsp;reportedly saved members over $115 million in its inaugural year.
Disney&#8217;s CEO&nbsp;Bob&nbsp;Iger&nbsp;anticipates profitability in the company&#8217;s streaming segment by the end of the fiscal year, which concludes in September.
Kroger stock gained more than 10% in the last 12 months. Investors can gain exposure to the stock via&nbsp;First Trust Consumer Staples AlphaDEX Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXG#NYSE">FXG</a>) and&nbsp;Invesco S&amp;P 500 Equal Weight Consumer Staples ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPS#NYSE">RSPS</a>).
Price Action: KR shares closed lower by 1.10% at $54.77 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Photo via Wikimedia Commons

General

AMZN

CMCSA

PARA

RSPS

Kroger To Boost Customer Perks With Disney+ Streaming: Report

Bunge Limited&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BG#NYSE">BG</a>) shares traded lower&nbsp;&nbsp;Wednesday after the company<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">&nbsp;reported first-quarter results</a>.
The company reported adjusted earnings per share of $3.04,&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/b38398262/bunge-reports-first-quarter-2024-results" rel="noreferrer noopener">beating the analyst consensus of $2.54</a>.&nbsp;
Quarterly revenues of $13.417 billion<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">&nbsp;missed the street view of $13.956 billion.</a>
In the agribusiness, higher processing results were more than offset by lower results in merchandising, while refined and specialty Oil units were down from a strong prior year.&nbsp;
&#8220;During the quarter we invested further in our pipeline of growth projects and made excellent progress&nbsp;on&nbsp;integration planning for our announced combination with Viterra,&#8221; said Greg Heckman, Bunge&#8217;s&nbsp;Chief Executive Officer.
Bunge exited the quarter with cash and equivalents worth $2.939&nbsp;billion&nbsp;and inventories worth $7.505 billion.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>,&nbsp;BG stock has gained over 15% in the past year.&nbsp;Investors can gain exposure to the stock via&nbsp;First Trust Cons. Staples AlphaDEX&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXG#NYSE">FXG</a>) and&nbsp;VanEck Agribusiness ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOO#NYSE">MOO</a>).
Outlook:&nbsp;Bunge reiterated a full-year 2024 adjusted&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">EPS outlook of approximately $9.00 versus&nbsp;the $9.39 estimate.</a>
The company sees full-year 2024 net interest expense in the range of $280 million to $310 million, which is down from previous&nbsp;expectation&nbsp;of $300 million to $330 million.
&#8220;While we are off to a strong start, we continue to have limited visibility into the back half of the year,&#8221; Heckman added.
Price Action:  BG shares are trading lower by 5.57% to $103.51 at last check Wednesday.

Earnings

Guidance

Markets

Bunge Shares Dip Over 5% After Q1 Results: Details Here

Shares of packaged foods giant Kraft Heinz Co. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/khc#NASDAQ">KHC</a>) <a href="https://www.benzinga.com/news/earnings/19/02/13227110/kraft-heinz-shares-plummet-what-you-need-to-know">were down more than 25 percent Friday</a> morning&nbsp;after the company said it&#39;s taking a&nbsp;$15.4-billion non-cash writedown on assets, including some of its venerable brands.
The company also said it received a subpoena from the Securities and Exchange Commission and slashed its quarterly dividend.&nbsp;
<h3>What Happened</h3>
The decline in&nbsp;<a href="https://www.benzinga.com/stock/khc">Kraft Heinz shares</a> could be felt in the world of exchange traded funds,&nbsp;where more than 160 funds have exposure to the stock. The Invesco QQQ (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) holds the most shares of the embattled staples company, but the ETF with the largest weight to Kraft Heinz is the First Trust Consumer Staples AlphaDEX Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fxg#NYSE">FXG</a>).
<h3>Why It&#39;s Important</h3>
As of Wednesday, Feb. 20, FXG had an allocation of 5.75 percent to Kraft Heinz, <a href="https://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FXG">according to issuer data</a>. That makes the stock FXG&#39;s third-largest holding. By comparison, the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlp#NYSE">XLP</a>), the largest ETF focused on the sector, has a Kraft Heinz weight of <a href="https://us.spdrs.com/en/etf/consumer-staples-select-sector-spdr-fund-XLP">just 2.06 percent</a>. The stock is not a top 10 holding in XLP.
The $335.70-million FXG is a smart beta alternative to cap-weighted staples funds like XLP. FXG&#39;s underlying index selects consumer staples stocks from the Russell 1000 Index based &ldquo;on growth factors including three, six and 12-month price appreciation, sales to price and one-year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets,&rdquo; according to First Trust.
Fourth-quarter earnings reported by Kraft Heinz missed even the lowest analyst estimates, according to Bloomberg. FXG rebalances quarterly, so it remains to be seen whether or not the stock is booted from the fund.
<h3>What&#39;s Next</h3>
In an effort to lower its debt burden, Kraft Heinz trimmed its quarterly dividend from 62.5 cents to 40 cents per share.&nbsp;
Fourteen <a href="https://www.etf.com/stock/KHC">dividend ETFs</a> have exposure to Kraft Heinz. While none of those funds directly use dividend increase streaks in their weighting schemes &mdash; a strategy that would imperil the status of Kraft Heinz if it resided in those funds &mdash;&nbsp;some of the payout ETFs holding shares of the stock weight stocks by dividends paid. That could lead to lower exposure to Kraft Heinz when those funds rebalance.
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Photo courtesy of Kraft Heinz.&nbsp;

Sector ETFs

Short Ideas

Dividends

Pre-Market Outlook

Trading Ideas

ETFs

This Quirky ETF Has The Largest Kraft Heinz Weight

The Consumer Staples Select Sect. SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) and other traditional consumer staples exchange-traded funds have recently been scuffling on concerns that the sector is pricey on valuation and in anticipation of the Federal Reserve&#39;s first interest rate hike of 2016.
The Fed proceeded with its first and only interest rate hike of the year last Wednesday, but XLP has climbed more than half a percent over the past week and is higher by about 3.7 percent this month. Still, XLP and rival staples ETFs missed out some potential, albeit modest upside on Monday after a major public pension plan opted to stay away from tobacco investments.
<h3>Pensions' Role</h3>
On Monday, the investment committee for the California Public Employees&#39; Retirement System (CalPERS), the largest public pension plan in the United States, not only opted against getting involved with tobacco stocks again, it extended its ban on such investments to affiliate funds. CalPERS divested its tobacco investments in 2000. To the pension provider&#39;s credit,<a href="https://www.calpers.ca.gov/page/newsroom/calpers-news/2016/votes-expand-tobacco-investment-ban"> it acknowledged</a> &ldquo;tobacco restrictions reduced portfolio returns by approximately $3 billion between 2001 and 2014.&rdquo;
An op-ed in the <a href="http://www.latimes.com/opinion/editorials/la-ed-calpers-tobacco-20161216-story.html">Los Angeles Times</a> put the number closer to $3.7 billion.
<h3>Pension And Tobacco</h3>
CalPERS has also decided to ban tobacco investments for affiliate funds.
&ldquo;CalPERS&#39; Affiliate Funds include the Judges&#39; Retirement System Fund, the Judges&#39; Retirement System II Fund, the Legislators&#39; Retirement System Fund, the Public Employees&#39; Health Care Fund, Supplemental Income Plans, the Public Employees&#39; Long-Term Care Fund, and the California Employers&#39; Retiree Benefit Trust Fund,&rdquo; according to a statement.
The CalPERS decision is relevant to XLP and comparable ETFs because XLP, the largest consumer staples ETF by assets, allocates 16.9 percent of its weight to tobacco stocks. That makes tobacco the ETF&#39;s fourth-largest industry weight. Phillip Morris International Inc. (NYSE: <a class="ticker" href="/stock/pm#NYSE">PM</a>) and Altria Group Inc (NYSE: <a class="ticker" href="/stock/mo#NYSE">MO</a>) are XLP&#39;s third- and fourth-largest holdings respectively.
CalPERS &ldquo;decided in April 2016 to request a review of the current tobacco restrictions. The resulting staff review examined the tobacco restrictions through multiple lenses encompassing a wide range of differing perspectives,&rdquo; the pension provider said.
Some staples ETFs that use smart beta strategies also have significant tobacco exposure. For example, the PowerShares Dynamic Consumer Sta. (ETF) (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>), which uses a momentum strategy, has a 12.3 percent weight to tobacco names.
<h3>Non-Tobacco Holding Staples ETFs</h3>
However, not all staples ETFs feature significant tobacco exposure. The First Trust Cnsumer Stapl Alpha Fd (ETF) (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>), which focuses on &ldquo;growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets,&rdquo; according to First Trust, only has a 4.7 percent tobacco weight.

Long Ideas

Commodities

Staples ETFs Miss Out On Some Pension Help

The Consumer Staples Select Sect. SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) is up about 1.8 percent this week. Perhaps that is the beginning of a comeback for a once hot sector exchange-traded fund that now resides about 7.5 percent below its July highs.
<h3>Low Beta Sectors' Recent Performance</h3>
Earlier this year, low beta sectors were leading broader benchmarks higher. And part of the reason defensive groups such as consumer staples and utilities were performing well also is that these sectors are interest rate-sensitive, meaning the Federal Reserve&#39;s refusal to raise interest rates this year was giving investors good reason to embrace<a href="http://www.benzinga.com/news/16/08/8393464/jilted-lovers-investors-are-souring-on-defensive-sector-etfs"> higher-yielding, lower beta sectors</a>.
As has been the case with the once beloved utilities sector, much of the allure surrounding consumer staples stocks, XLP and rival staples is evaporating as markets price in increasing chances of the <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/11/8629553/ahead-of-2016s-final-fomc-meeting-u-s-economy-better-pos">Fed raising interest rates</a> in December.
<h3>Near-Term Interest Rate Outlook</h3>
The near-term interest rate outlook, the one that includes Fed funds' futures pricing in a roughly 95 percent chance that the Federal Reserve hikes rates next week, could be one reason some analysts are have tepid views on XLP. For example, AltaVista Research has a Neutral rating on the largest staples ETF.
That rating &ldquo;indicates that valuations adequately reflect the fundamentals of stocks in these funds. The majority of funds we cover fall into this category,&rdquo; said <a href="http://altavista-research.com/">AltaVista in a recent note</a>.
The Fed&#39;s monetary policy presents other risks to staples ETFs such as XLP. Notably, a stronger U.S. dollar often accompanies rising Treasury yields, which is problematic for multi-national companies that derive substantial portions of their sales overseas. That description fits many of XLP&#39;s 39 holdings. 
<h3>XLP, Holdings And Consumer Staples</h3>
Marquee holdings in XLP include Dow components Procter &amp; Gamble Co (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) and The Coca-Cola Co (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>), two companies that generate substantial portions of their sales in markets outside the United States.
&ldquo;Consumer Staples tumbled post-election as the possibility of higher interest rates makes the sector&#39;s dividend payouts somewhat less attractive in comparison. The decline brought the P/E ratio to its lowest level in two years, but that was only enough for an upgrade from Underweight to Neutral [emphasis omitted] territory. Return on Equity looks headed in the wrong direction, and forecasts for 2017 look overly optimistic to us in light of recent history,&rdquo; said AltaVista.
Investors have pulled capital from some staples ETFs this year. For example, the First Trust Cnsumer Stapl Alpha Fd (ETF) (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>), a smart beta rival to XLP, has bled more than $2.1 billion, a total exceed by just nine other ETFs. XLP has lost $349.1 million in assets this year.

Analyst Color

Economics

Federal Reserve

Analyst Ratings

Trying Times For Staples ETFs

Sector exchange-traded funds are increasingly important parts of investors&#39; portfolios, and that sentiment includes both professional and retail investors. These ETFs can help investors steer clear of a familiar dilemma that confounds legions of investors: identifying the right stock in the <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/11/8732825/why-sector-etfs-may-be-better-than-individual-stocks">right sector at the right time</a>.
<h3>So Much More Than Timing</h3>
Many of the most popular sector ETFs on the market today are cap-weighted funds, but there are some credible smart beta alternatives, including First Trust&#39;s series of AlphaDEX sector ETFs. That group includes the First Trust Consumer Stapl Alpha Fd (ETF) (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>) and the First Trust Ind/Prod AlphaDEX Fd (ETF) (NYSE: <a class="ticker" href="/stock/fxr#NYSE">FXR</a>).
The AlphaDEX methodology includes ranking members of various Russell 1000 sectors on growth factors including three-, six- and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets, <a href="http://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FXN">as First Trust noted</a> on the AlphaDEX funds&#39; websites.
<h3>Recent AlphaDEX Performance</h3>
Likely the handiwork of ETF strategists or other institutional-type investors, cash has recently been pouring into FXR and FXG.
&ldquo;This week we have seen what looks like a sector rotation trade involving two First Trust sector funds, where more than $700 million entered <a href="http://etfdailynews.com/etf/FXR/">FXR</a> (Industrials/Producer Durables AlphaDEX) and the same dollar amount exited <a href="http://etfdailynews.com/etf/FXG/">FXG</a> (Consumer Staples AlphaDEX). Trading volume in each of the funds topped 20 million shares apiece on Monday of this week, which are huge multiples of the typical daily volumes in each product,&rdquo; said Street One Financial Vice President Paul Weisbruch <a href="http://streetonefinancial.com/">in a recent note</a>.
<h3>More About FXG</h3>
The $1.3 billion FXG is a departure from cap-weighted staples ETFs in that the First Trust offering&#39;s 42 holdings have a median market value of $15.2 billion, putting the ETF in mid-cap territory. In other words, this is not the ETF for investors looking for a staples ETF dominated by the likes of Procter &amp; Gamble Co (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) or The Coca-Cola Co (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>).
While those two stocks may be staples of standard staples ETFs, they combine for just over 2.3 percent of FXG&#39;s weight.
<h3>More About FXR</h3>
A similar scenario is seen with FXR. That ETF, also home to $1.3 billion in assets, is not dominated by the most familiar industrial stocks. In fact, FXR is, arguably, a quasi-airline ETF as airline stocks represent seven of the <a href="http://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FXR">ETF&#39;s top 10 holdings</a>. While FXR has some perks in certain environments, it has lagged the S&amp;P 500 Industrial Index by about 150 basis points since inception.

First Trust Industrials/Producer Durables AlphaDEX Fund

2 Sector ETFs Drawing Renewed Attention

The First Trust Dorsey Wright Focus 5 ETF (First Trust Exchange Traded Fund VI (NASDAQ: <a class="ticker" href="/stock/fv#NASDAQ">FV</a>)), one of the stars of 2014&#39;s crop of rookie exchange-traded funds, now has a dynamic counterpart with last week&#39;s launch of the First Trust Dorsey Wright Dynamic Focus 5 ETF (NASDAQ: FVC).
Like FV, the First Trust Dorsey Wright Dynamic Focus 5 ETF holds, in order, the First Trust Consumer Disry Alpha Fnd (ETF) (NYSE: <a class="ticker" href="/stock/fxd#NYSE">FXD</a>), First Trust DJ Internet Index Fund (ETF) (NYSE: <a class="ticker" href="/stock/fdn#NYSE">FDN</a>), First Trust Cnsumer Stapl Alpha Fd (ETF) (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>), First Trust Utilities AlphaDEX Fnd (ETF) (NYSE: <a class="ticker" href="/stock/fxu#NYSE">FXU</a>) and the First Trust Health Care AlphaDEX Fd(ETF) (NYSE: <a class="ticker" href="/stock/fxh#NYSE">FXH</a>).
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/03/7665385/a-new-muti-asset-etf-of-etfs">A New Multi-Asset ETF Of ETFs</a></bzrelatedlink>
<h3>The Differences Between FV And FVC</h3>
While those ETFs represent all of FV&#39;s lineup, they combine for about 60 percent of the new FVC. The rest of FVC&#39;s lineup is allocated to <a href="http://www.ftportfolios.com/Retail/Etf/EtfHoldings.aspx?Ticker=FVC">short-term U.S. T-bills</a>.
The relative strength analysis for FVC&#39;s equity ETFs is conducted on a bi-monthly basis as is the analysis for the ETF&#39;s cash holdings, according to Illinois-based <a href="http://www.ftportfolios.com/LoadContent/gr3ukptsgaho">First Trust</a>.
Though FV is considered a passively managed ETF, relative strength analysis of its constituent ETFs is conducted weekly, meaning if one (or more) of the holdings tumble enough, they can be removed from FV and replaced with other First Trust sector and industry funds displaying better relative strength traits.
FV&#39;s ability to change holdings was on display earlier this year when it dumped the First Trust NYSE Arca Biotchnlgy Indx Fd (NYSE: <a class="ticker" href="/stock/fbt#NYSE">FBT</a>) in favor of FXU. However, that move left many FV investors what took so long as FV endured a massive slide in biotech stocks before parting ways to with FBT.
FVC has its work cut out for it when it comes to competing with FV, which has over $3.4 billion in assets under management. However, the new FVC is slightly less expensive than FV, as the former charges 0.79 percent per year, or $79 for each $10,000 invested, compared with FV&#39;s annual expense ratio of 0.89 percent.
Image Credit: <a href="https://pixabay.com/en/welcome-quote-sign-poster-998360/">Public Domain</a>

Specialty ETFs

New ETFs

First Trust NYSE Arca Biotechnology Index Fund

First Trust Dow Jones Internet Index Fund

First Trustnsumer Discretionary AlphaDEX Fund

Focus 5 ETF Gets A Dynamic Counterpart

The Utilities SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>) is the only one of the sector SPDR exchange-traded funds higher on a year-to-date basis, but the Consumer Staples Select Sect. SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) is not far behind with a barely noticeable 2016.
The last couple of days of market action aside, leadership from ETFs such as XLP and XLU generally is not considered encouraging regarding risk appetite, but these shelter-from-the-storm plays are what&#39;s working this year, and that trend could continue as Treasury yields move lower.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/media/cnbc/16/01/6191082/dan-nathans-consumer-staples-select-sect-spdr-etf-trade">Dan Nathan's Consumer Staples Select Sect. SPDR (ETF) Trade</a></bzrelatedlink>
<h3>The Constant Appeal Of Consumer Staples</h3>
Data indicate advisors and investors are clearly enthusiastic about consumer staples stocks and ETFs this year. Year-to-date, XLP has added<a href="http://www.benzinga.com/trading-ideas/long-ideas/16/01/6128559/the-tussle-between-two-big-consumer-etfs-is-telling"> nearly $965 million</a> in new assets. Among sector ETFs, only XLU has outpaced XLP&#39;s 2016 inflows.
&ldquo;Consumer staples stocks, which generally sport above-average dividend yields and have consistent earnings records, have been a bright spot in the U.S. equity market the last two years. After rising 6.6 percent in 2015, the total return for the S&amp;P 500 consumer staples sector was just -0.8 percent year to date through February 12 in contrast to the 8.5 percent decline for the broader index,&rdquo; said <a href="http://trymsatoday.com/">S&amp;P Capital IQ</a> in a new research note.
Further underscoring investors&#39; preference lower beta sectors this year, XLP is handily outperforming its discretionary rival, the Consumer Discretionary SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xly#NYSE">XLY</a>). Interestingly, each of <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/02/6271280/consumer-conundrum-assessing-this-etfs-rebound-prospects">the four members of the</a> Dow Jones Industrial Average that are members of XLY&#39;s lineup are among the 24 Dow stocks lower on the year. Conversely, three of the six Dow stocks in the green are XLP holdings.
&ldquo;S&amp;P Global Market Intelligence has stock recommendations on 60 U.S. consumer staples companies, 26 of which were buys or strong buys. Among sub-industries, packaged food &amp; meat companies were one that was well represented; eight companies were buys or strong buys,&rdquo; said the research firm. &ldquo;While Joseph Agnese, S&amp;P Global Market Intelligence consumer staples equity analyst, sees some currency headwinds impacting revenues, cost savings should help boost 2016 earnings for some companies in the sub-industry.&rdquo;
<h3>FXG, Growth And Value</h3>
S&amp;P Capital also highlighted the First Trust Consumer Stapl Alpha Fd (ETF) (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>). FXG is a different beast than XLP as the latter weighs its holdings based on a combination of growth and value factors.
As a smart beta ETF, FXG has the potential to outperform rival staples ETFs in strong bull markets, something the fund has previously done, but the current market environment is revealing some of the disadvantages associated with alternative weighting methodologies at the sector level as FXG is down more than 1 percent this year.
XLP and FXG rank favorably due to low risk considerations regarding the ETFs&#39; holdings, said S&amp;P Capital IQ.
Image Credit: <a href="https://pixabay.com/en/food-russia-russian-ukraine-bread-1067649/">Public Domain</a>

Intraday Update

Select Sector SPDR-Consumer Discretionary

Staples ETFs Offering Protection In Turbulent Markets

The First Trust Dorsey Wright Focus 5 ETF (First Trust Exchange Traded Fund VI (NASDAQ: <a class="ticker" href="/stock/fv#NASDAQ">FV</a>)) is reportedly dumping some of its riskier holdings in favor of more conservative fare as the S&amp;P 500 has tumbled 8 percent year to date.
<h3>FV Is An ETF Of ETFs</h3>
Since coming to market in March 2014, FV has held the same five First Trust industry and sector ETFs. Those funds are as follows:
<ul>
<li>First Trust NYSE Arca Biotchnlgy Indx Fd (NYSE: <a class="ticker" href="/stock/fbt#NYSE">FBT</a>)</li>
<li>First Trust DJ Internet Index Fund (ETF) (NYSE: <a class="ticker" href="/stock/fdn#NYSE">FDN</a>)</li>
<li>First Trust Cnsumer Stapl Alpha Fd (ETF) (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>)</li>
<li>First Trust Health Care AlphaDEX Fd(ETF) (NYSE: <a class="ticker" href="/stock/fxh#NYSE">FXH</a>)</li>
<li>First Trust Cnsmer Disry Alpha Fnd (ETF) (NYSE: <a class="ticker" href="/stock/fxd#NYSE">FXD</a>)</li>
</ul>

<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/02/6224695/an-etf-thats-a-good-value-for-value-stocks">An ETF That's A Good Value For Value Stocks</a></bzrelatedlink>
That was FV&#39;s lineup as of February 4, according to <a href="http://www.ftportfolios.com/Retail/Etf/EtfHoldings.aspx?Ticker=FV">First Trust data</a>.
<h3>An Appreciated Switch</h3>
Citing market evidence and ETF market makers,<a href="http://blogs.barrons.com/focusonfunds/2016/02/05/big-dorsey-wright-etf-gets-defensive-after-sharp-drop/"> Barron&#39;s</a> reported FV made its first change last week, swapping out of FBT for the First Trust Utilities AlphaDEX Fnd (ETF) (NYSE: <a class="ticker" href="/stock/fxu#NYSE">FXU</a>). The change is welcome, but it probably also leaves FV investors wondering what took so long.
FBT, the second-largest biotech ETF by assets, has lost a third of its value in the past six months and more than 24 percent in just the past month. Market data suggest the Barron&#39;s report about FV dumping FBT in favor of FXU is accurate. For example, FBT&#39;s volume swelled 17.1 million shares on Friday compared to the ETF&#39;s 90-day average of just over 531,300. FXU&#39;s Friday volume was a staggering 48.3 million compared to a 90-day average of less than 519,000 shares.
Though FV is considered a passively managed ETF, relative strength analysis of its constituent ETFs is conducted weekly, meaning if one (or more) of the holdings tumble enough, they can be removed from FV and replaced with other First Trust sector and industry funds displaying better relative strength traits.
<h3>The Bottom Line</h3>
FV, an ETF beloved by advisors and investors that are followers of Dorsey Wright&#39;s momentum-based, relative strength strategies, is home to over $3.6 billion in assets under management, making it one of the most successful ETFs to come to market in 2014. However, investors have pulled nearly $448 million from the ETF this year. 
Image Credit: <a href="https://pixabay.com/en/stock-exchange-trading-floor-738671/">Public Domain</a>

Broad U.S. Equity ETFs

Popular ETF Of ETFs Gets Defensive After Market Slide

Broadly speaking, the consumer staples sector, the sixth-largest sector weight in the S&amp;P 500, is not known for growth and excitement. If anything, investors looking to embrace the likes of Procter &amp; Gamble Co. (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>), The&nbsp;Coca-Cola Co&nbsp;(NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>) and Wal-Mart Stores, Inc. (NYSE: <a class="ticker" href="/stock/wmt#NYSE">WMT</a>) are arguably looking to avoid too much excitement.

	However, there are ways to for investors to capture growth and momentum with staples, a sector not often known for those traits. In fact, momentum is a fine place to be right now because that investment factor is outperforming value by a wide margin this year. Among staples exchange traded funds rooted in momentum, there is the PowerShares DWA Consumer Staples Momentum Portfolio (NYSE: <a class="ticker" href="/stock/psl#NYSE">PSL</a>).

	With a year-to-date gain of just over 8 percent, PSL is easily outperforming its cap-weighted counterparts, its primary equal-weight rival and the thumping First Trust Consumer Staples AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>), another smart beta spin on the staples sector. Put simply, to this point in 2015, PSL is the year&#39;s top-performing consumer staples ETF.
<h3>
	A Closer Look</h3>

	PSL follows the Dorsey Wright Consumer Staples Technical Leaders Index, a benchmark that &ldquo;is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from the NASDAQ US Benchmark Index,&rdquo; <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PSL">according to PowerShares</a>, the fourth-largest U.S. ETF issuer.

	Related Link:<a href="http://www.benzinga.com/general/biotech/15/09/5858391/traders-bet-against-hillary-with-leveraged-biotech-etf"> Traders Bet Against Hillary With Leveraged Biotech ETF</a>

	With its emphasis on momentum, the $220.7 million PSL features some significant departures from traditional cap-weighted staples ETFs when it comes to individual holdings. For example, none of PSL&#39;s 32 holdings command weights in excess of 4.9 percent and only the<a href="http://www.benzinga.com/trading-ideas/long-ideas/15/07/5712851/a-tobacco-reunion-would-be-huge-for-consumer-staples-etfs">&nbsp;two tobacco stocks</a> found among the ETF&#39;s top 10 holdings would also be likely to be found among the top holdings in traditional staples ETFs.&nbsp;

	Run-of-the-mill staples ETFs are usually excessively allocated to large- and mega-cap stocks, but PSL allocates less than a quarter of its weight to large caps. Rare is the staples ETF that features a stock like Monster Beverage Corp. (NASDAQ: <a class="ticker" href="/stock/mnst#NASDAQ">MNST</a>) among its top 10 holdings and rare is the staples fund that allocates more than half its weight to mid caps, but PSL is that fund.

	Investors looking for a staples ETF that holds traditional fare such as Procter &amp; Gamble and Coca-Cola should eschew PSL because the fund does not own those stocks. That is okay because over the past year, the Dorsey Wright Consumer Staples Technical Leaders Index has offered nearly double the returns of the S&amp;P 500 consumer staples index and over the past three- and five-year periods, PSL has topped that index. PSL started tracking the Dorsey Wright index early last year.

	Investors are clearly warming to PSL&#39;s story as the ETF has hauled in $150.6 million of its $220.7 million in assets under management just this year, a total topped by just 11 other PowerShares ETFs, <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/tools/flow-trend-tracker">according to issuer data</a>.

Bringing Some Excitement To Consumer Staples ETFs

Plenty of exchange traded funds experienced acute volatility at the open of U.S. markets Monday and the First Trust Dorsey Wright Focus 5 ETF (NASDAQ: <a class="ticker" href="/stock/fv#NASDAQ">FV</a>) was no exception.

	FV, an ETF beloved by advisors and investors that are followers of Dorsey Wright&#39;s momentum-based, relative strength strategies, shows an intra-day range of $11.70 to $22.98. While that could speak to conspiracy theories of a mini &ldquo;flash crash&rdquo; for FV, charts for the ETFs five holdings all show similarly wild candles and wide intraday ranges.

	For example, the First Trust NYSE Arca Biotechnology Index Fund (NYSE: <a class="ticker" href="/stock/fbt#NYSE">FBT</a>) traded as low as $70, but now resides above $110 while the First Trust Health Care AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxh#NYSE">FXH</a>) touched $44.41 before running back above $63. FBT and FXH are FV&#39;s two largest holdings, combining for more than <a href="http://www.ftportfolios.com/Retail/Etf/EtfHoldings.aspx?Ticker=FV">46 percent of FV&#39;s weight</a>.

	FV&#39;s other holdings are the First Trust Dow Jones Internet Index Fund (NYSE: <a class="ticker" href="/stock/fdn#NYSE">FDN</a>), First Trust Consumer Staples AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>) and the First Trust Consumer Discretionary AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxd#NYSE">FXD</a>). Yes, that trio have also traded in jaw-dropping ranges.

	Monday&#39;s chaos not withstanding, FV&#39;s roster speaks to the ETF&#39;s vulnerability in the current market environment. Said another way, what drove the ETF higher for much of this year is now an albatross, that being significant biotech exposure. Not only is FBT, the second-largest biotech ETF by assets, FV&#39;s largest holding, but FXH, the AlphaDEX health care ETF, <a href="http://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FXH">has a 20.2 percent weight</a> to biotech stocks.
<h3>
	Another Problem</h3>

	Biotech is not the only problem for FV. The ETF&#39;s Internet exposure via FDN, also previously a selling point, has turned problematic. Nine of FDN&#39;s top 10 holdings, a group that combines for nearly 60 percent of that ETF&#39;s weight, are members of the Nasdaq Composite and that benchmark has tumbled 7.1 percent over the past month.

	Things have gotten so rough for momentum stocks and ETFs that over the past month, the best-performing member of FV&#39;s roster is FXG, the AlphaDEX consumer staples ETF, and that fund is still down 3.5 percent.

	However, there is a silver lining with FV. Though FV is considered a passively managed ETF, relative strength analysis of its constituent ETFs is conducted weekly, meaning if one (or more) of the holdings tumble enough, they can be removed from FV and replaced with other First Trust sector and industry funds displaying better relative strength traits.

	On that subject, it is interesting to note that FV debuted in March 2014, right before the albeit somewhat brief biotech and Internet meltdown experience that year, and the fund&#39;s holdings have yet to change.

A Wild Day For A Beloved Momentum ETF

The consumer staples sector is typically known as a stalwart area of the market and so far it has lived up to that reputation in 2015.

	The Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) tracks 39 large-cap companies primarily engaged in the food, beverage, and consumer products industries. This fund is home to companies such as Costco Wholesale Corporation (NASDAQ: <a class="ticker" href="/stock/cost#NASDAQ">COST</a>) and The Coca-Cola Co (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>), which typically have stable business models with little fear of consumers giving up on its wares.

	This ETF has accumulated over $7.2 billion in total assets and carries a modest expense ratio of 0.15 percent. In addition, it sports a 30-day SEC yield of 2.47 percent.

	As noted on the chart below, XLP has traded sideways for the majority of 2015 and is essentially flat on the year in total return. That low volatility and overall defensive positioning places XLP right in the middle of the pack in terms of major S&amp;P sector returns.
<div id="preview-wrapper">
<div id="file-preview">
		<a href="https://www.benzinga.com/imce?app=nomatter%7Cimceload%40imceInline.load#" title=""><img alt="xlp.png" height="284" src="https://www.benzinga.com/files/u79448/xlp.png" width="460" /></a></div>
</div>

	Another top ETF in this space is the First Trust Consumer Staples AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>). This ETF takes a varied approach by constructing a portfolio of consumer companies based on fundamental factors that include recent performance, sales growth, cash flow and return on assets.

	FXG has just 38 holdings, yet the enhanced screening criterion has shaped this fund into a markedly different basket of stocks than XLP. Top holdings include companies such as WhiteWave Foods Co (NYSE: <a class="ticker" href="/stock/wwav#NYSE">WWAV</a>) and CVS Health Corp (NYSE: <a class="ticker" href="/stock/cvs#NYSE">CVS</a>).

	The slant towards smaller company stocks has allowed FXG to distance itself from its competition this year as well. year-to-date, this ETF has gained 4.3 percent and has continued to indicate a steady uptrend is in place.

	Lastly, the iShares Global Consumer Staples ETF (NYSE: <a class="ticker" href="/stock/kxi#NYSE">KXI</a>) takes a broader approach to incorporating both U.S. and international stocks in its portfolio. This ETF has 95 positions distributed in a market-cap weighted allocation and total assets approaching $625 million.

	KXI has benefited from its overseas exposure so far this year and is up about 1 percent heading into the second half of 2015.

	Each of these ETFs offers a distinctive and diversified approach within a sector of the market that has largely managed to avoid excess volatility over the last six months.

COST

iShares S&P Globalnsumer Staples Sector Index Fund

WWAV

Consumer Staple ETFs Remain Steady In 2015

&nbsp;

	 
	By&nbsp;<a data-ls-seen="1" href="http://www.dailygainsletter.com/author/johnwhitefoot/" rel="author" style="font-family: Verdana, Arial, Geneva, sans-serif; font-size: 12px; line-height: 16px; background-color: rgb(255, 255, 255);" title="Posts by John Whitefoot">John Whitefoot</a>


	 
	As consumers, we don&rsquo;t always do what we say we do.<a data-ls-seen="1" data-mce-href="http://www.dailygainsletter.com/consumer-confidence/" href="http://www.dailygainsletter.com/consumer-confidence/" style="font-size: 13px; line-height: 19px;" title="Consumer confidence">Consumer confidence</a>&nbsp;is, by all accounts, down, but spending in some areas is up. According to the Michigan Index, U.S.<a data-mce-href="http://www.dailygainsletter.com/stock-market/consumer-confidence-increases-will-the-stock-market-follow/923/?lc=int_mb_1001" href="http://www.dailygainsletter.com/stock-market/consumer-confidence-increases-will-the-stock-market-follow/923/?lc=int_mb_1001" style="font-size: 13px; line-height: 19px;">consumer confidence</a>&nbsp;slipped in August from a six-year high. The Bloomberg Consumer Comfort Index, meanwhile, plummeted for four straight weeks to its lowest reading since April.


	 
	Yet interestingly, August auto sales were the strongest in over six years&mdash;proof, on some level, that low consumer confidence and optimism don&rsquo;t portend weak consumer spending. But that doesn&rsquo;t mean that we&rsquo;re necessarily spending smartly&mdash;after all, lots of people spend&nbsp;<a data-mce-href="http://www.dailygainsletter.com/wealth-management/one-basic-strategy-for-making-money-from-water/960/?lc=int_mb_1001" href="http://www.dailygainsletter.com/wealth-management/one-basic-strategy-for-making-money-from-water/960/?lc=int_mb_1001" style="font-size: 13px; line-height: 19px;">money</a>when they&rsquo;re depressed&mdash;and with wages stagnant, high unemployment, and a record number of Americans on food stamps, we have plenty of reason to spend.


	 
	According to some, consumer confidence is unrelated to spending and is more closely aligned to our political affiliation. In fact, self-proclaimed Democrats and Republicans are showing the weakest correlation on the direction of the&nbsp;<a data-mce-href="http://www.dailygainsletter.com/economy/?lc=int_mb_1001" href="http://www.dailygainsletter.com/economy/?lc=int_mb_1001">economy</a>&nbsp;since 1990. (Source: Jamrisko, M., &ldquo;Confidence Measures Show It&rsquo;s the Politics, Stupid,&rdquo; Bloomberg web site, September 10, 2013.)


	 
	Where zero indicates no trend and one shows them moving in step, the correlation between the confidence of Republicans and Democrats is 0.25 since Obama started his first term. During George W. Bush&rsquo;s two terms, it was 0.55, and Americans of every political persuasion were in virtual agreement on the direction of the&nbsp;<a data-ls-seen="1" data-mce-href="http://www.dailygainsletter.com/u-s-economy/" href="http://www.dailygainsletter.com/u-s-economy/" title="U.S. economy">U.S. economy</a>&nbsp;during the Clinton era at 0.95.


	 
	Up until the beginning of September, Democratic voters had been more confident overall than Republicans for 75 straight weeks. Their rose-colored glasses, on the other hand, couldn&rsquo;t find the same disciplined focus when it came to personal finances. During those same 75 weeks, their views on personal finance trumped those of Republicans in only seven weeks&mdash;which may or may not make sense in light of the fact that of those who take home more than $75,000 a year, Republicans outnumber Democrats by 2.1 percentage points, down from 4.4 points in 2008.


	 
	While consumer confidence numbers on their own are an important measure, our views on&nbsp;<a data-mce-href="http://www.dailygainsletter.com/income/?lc=int_mb_1001" href="http://www.dailygainsletter.com/income/?lc=int_mb_1001">income</a>&nbsp;and personal finance may be more enlightening when it comes to trying to predict real consumer confidence and consumer spending.


	 
	Those who think consumer confidence and the personal finances of Americans are improving can invest in any number of consumer goods companies. One company that should benefit from both higher and lower consumer confidence is Winmark Corp. (NASDAQ: <a class="ticker" href="/stock/wina#NASDAQ">WINA</a>). A retailer that buys, sells, trades, and consigns merchandise; most people know it as the owners of Play It Again Sports and Once Upon a Child. The company&rsquo;s second-quarter earnings were up almost 30% year-over-year. In step, Winmark&rsquo;s share price is up 26% year-to-date and almost 40% year-over-year.


	 
	For those who are uncertain about the direction of consumer sentiment and the U.S. economy but still understand there are some products Americans will purchase no matter what, you might want to consider consumer staple exchange-traded funds (ETFs) like First Trust Consumer Staples AlphaDEX (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>) or Power Shares Dynamic Food &amp; Beverage (NYSE: <a class="ticker" href="/stock/pbj#NYSE">PBJ</a>).


	 
	Under an umbrella of an uncertain economic environment and political divergence, some consumer goods stocks and ETFs will continue to provide investors with interesting opportunities to grow their&nbsp;<a data-ls-seen="1" data-mce-href="http://www.dailygainsletter.com/retirement/" href="http://www.dailygainsletter.com/retirement/" title="retirement">retirement</a>&nbsp;portfolios.


	 
	This article&nbsp;<a data-mce-href="http://www.dailygainsletter.com/stock-market/a-stock-that-does-well-even-if-consumer-confidence-is-falling/1768/" href="http://www.dailygainsletter.com/stock-market/a-stock-that-does-well-even-if-consumer-confidence-is-falling/1768/" target="_blank">A Stock That Does Well Even If Consumer Confidence Is Falling?</a>&nbsp;was originally published at&nbsp;<a data-mce-href="http://www.dailygainsletter.com" href="http://www.dailygainsletter.com/" target="_blank">Daily Gains Letter</a>

WINA

A Stock That Does Well Even If Consumer Confidence Is Falling?

Here is the ETF Professor's ETF Watch List for Wednesday, September 11, 2013.

Give the Direxion Daily Energy Bear 3X Shares (NYSE: <a class="ticker" href="/stock/ery#NYSE">ERY</a>) a look.

Keep an eye on the First Trust Consumer Staples AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>).

The PowerShares Dynamic Pharmaceuticals ETF (NYSE: <a class="ticker" href="/stock/pjp#NYSE">PJP</a>) looks interesting. 

Emerging markets plays of the day: iShares S&amp;P Latin America 40 ETF (NYSE: <a class="ticker" href="/stock/ilf#NYSE">ILF</a>), WisdomTree Emerging Markets SmallCap Dividend ETF (NYSE: <a class="ticker" href="/stock/dgs#NYSE">DGS</a>) and the iShares MSCI South Korea ETF (NYSE: <a class="ticker" href="/stock/ewy#NYSE">EWY</a>).

Forex play of the day: PowerShares DB G10 Currency Harvest ETF (NYSE: <a class="ticker" href="/stock/dbv#NYSE">DBV</a>).

Bond play of the day: ProShares UltraShort 20+ Year Treasury (NYSE: <a class="ticker" href="/stock/tbt#NYSE">TBT</a>).

Emerging Market ETFs

Currency ETFs

Wisdomtree Emerging Markets Smallcap Dividend Fund

iShares Trust S&P Latin America 40 Index Fund

ProShares UltraShort Lehman 20+ Year Treasury

ETFs to Watch September 11, 2013 (DBV, PJP, TBT)

Here is the ETF Professor's ETF Watch List for Thursday, August 1, 2013.

Give the ProShares Ultra Silver (NYSE: <a class="ticker" href="/stock/agq#NYSE">AGQ</a>) a look.

Keep the First Trust Consumer Staples AlphaDEX (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>) on your radar.

Can the Market Vectors Biotech ETF (NYSE: <a class="ticker" href="/stock/bbh#NYSE">BBH</a>) keep going.

Keep an eye on the SPDR S&amp;P Retail ETF (NYSE: <a class="ticker" href="/stock/xrt#NYSE">XRT</a>).

Emerging markets plays of the day: PowerShares India Portfolio (NYSE: <a class="ticker" href="/stock/pin#NYSE">PIN</a>), iShares MSCI Malaysia ETF (NYSE: <a class="ticker" href="/stock/ewm#NYSE">EWM</a>) and the Market Vectors Brazil Small-Cap ETF (NYSE: <a class="ticker" href="/stock/brf#NYSE">BRF</a>).

Forex play of the day: CurrencyShares Canadian Dollar Trust (NYSE: <a class="ticker" href="/stock/fxc#NYSE">FXC</a>).

Bond play of the day: Vanguard Short-Term Bond ETF (NYSE: <a class="ticker" href="/stock/bsv#NYSE">BSV</a>).

ETFs to Watch August 1, 2013 (BSV, EWM, XRT)

Here is the ETF Professor's ETF Watch List for Tuesday, July 2, 2013.

Check in with the WisdomTree Japan Hedged Equity ETF (NYSE: <a class="ticker" href="/stock/dxj#NYSE">DXJ</a>).

Give the First Trust Consumer Staples AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>) a look.

Give the Direxion Daily Semicondct Bull 3X Shares (NYSE: <a class="ticker" href="/stock/soxl#NYSE">SOXL</a>) a try.

Keep an eye on the ETFS Physical Silver Shares (NYSE: <a class="ticker" href="/stock/sivr#NYSE">SIVR</a>).

Emerging markets plays of the day: iShares MSCI Brazil ETF (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>), Guggenheim China Small-Cap ETF (NYSE: <a class="ticker" href="/stock/hao#NYSE">HAO</a>) and the iShares MSCI South Korea ETF (NYSE: <a class="ticker" href="/stock/ewy#NYSE">EWY</a>).

Forex play of the day: CurrencyShares Australian Dollar Trust (NYSE: <a class="ticker" href="/stock/fxa#NYSE">FXA</a>).

Bond play of the day: SPDR Barclays Capital High Yield Bond ETF (NYSE: <a class="ticker" href="/stock/jnk#NYSE">JNK</a>).

WisdomTree Trust Japan Total Dividend Fund

SIVR

SOXL

ETFs to Watch July 2, 2013 (FXG, JNK, SOXL)

It has been a good year to own drug store stocks. The group's behemoth, CVS Caremark (NYSE: <a class="ticker" href="/stock/cvs#NYSE">CVS</a>), is up 17 percent. Rival Walgreen (NYSE: <a class="ticker" href="/stock/wag#NYSE">WAG</a>) has surged 28 percent while Rite-Aid (NYSE: <a class="ticker" href="/stock/rad#NYSE">RAD</a>), often viewed as the more speculative member of the drug store sub-sector, has more than doubled.

	Favorable demographics and looming implementation of the Patient Protection and Affordable Care Act are seen as catalysts boosting drug store stocks.

	"We think drug retailers are well positioned to benefit from increased volumes as implementation of the new healthcare law results in a significant increase in the number of people covered by health insurance," said S&amp;P Capital IQ in a new research note.

	S&amp;P Capital IQ has a five-star rating on CVS and a four-star rating on Rite-Aid. The research firm has a three-star rating on Walgreen.

	"We expect traffic to retail drugstores to rise significantly in 2014, with about 30 million people expected to gain healthcare coverage on January 1, 2014. We believe drugstores have advantages over alternative formats (including supercenters, supermarkets, warehouse clubs and mail order pharmacies), such as being conveniently located close to people's homes, offering a faster in-and-out experience with smaller parking lots and building footprints, and a more personalized one-on-one pharmacist experience," said the research firm.

	Upside for drugstores could be good news for consumer staples ETFs, including the group's largest fund, the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>), according to S&amp;P Capital IQ. Previously <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/05/3555385/three-sector-etfs-up-20-or-more-ytd">high-flying staples ETFs</a> do feature some exposure to drugstore stocks.

	For example, CVS is a top-10 holding in XLP and combines with Walgreen to represent 8.5 percent of that ETF's weight. The Vanguard Consumer Staples ETF (NYSE: <a class="ticker" href="/stock/vdc#NYSE">VDC</a>) also features CVS among its top-10 lineup as well as allocations to Walgreen and Rite-Aid. S&amp;P Capital IQ rates both of those ETFs Overweight.

	The First Trust Consumer Staples AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>) devotes almost six percent of its combined weight to CVS and Walgreen. Although FXG has outperformed XLP and VDC by a wide margin over the past year, S&amp;P rates the ETF Marketweight.

	"We think traffic will also be aided as an aging U.S. baby boomer generation, with 10,000 people turning 65 years old every day, results in increased demand for retailers' prescription drug offerings. We think national chains are well positioned as their pharmacy departments continue to gain in importance, with prescription sales contributing over 70% of total sales," said S&amp;P Capital IQ in the note.

	However, there is a cautionary tale with staples ETFs. After being <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3465648/staples-etfs-rally-heres-why-it-can-continue"> a leadership group for three years</a>, staples funds, along with other low-beta sector ETFs such as utilities funds, wilted in May. Speculation about rising interest rates and a cyclical rotation are among the issues that have taken some of the wind out of staples ETFs' sails.

	While not as bad as the almost eight percent loss taken by the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>) this month, XLP finished May down more than one percent. VDC finished down a similar amount. More downside could be on the way and the weights drugstore stocks represent in staples ETFs probably will not be enough to prop the funds up.

	"Given that the movement in 10-year UST has been a strong proxy for Staples' relative valuation, the recent underperformance in Staples is not surprising. We also find it instructive to assess the implied downside to the group based on the rate move relative to the move in dividend yields. Our analysis shows that XLP should be down another 6% to ‘catch-up' to the rising rates," <a href="http://blogs.barrons.com/focusonfunds/2013/05/31/consumer-staples-etf-should-fall-6-just-to-catch-up-to-rates-goldman/">according to an excerpt from a Goldman Sachs note</a> published in Barron's Friday.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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