ETFs to Target the Consumer Goods and Staples Markets
List of Consumer ETFs
Consumer goods are a staple in our economy. They satisfy needs, drive sales and revenue, and are a strong indicator of the economy’s overall health. And of course, there is a whole financial sector focusing on investing in consumer products.
One of the easiest ways to gain exposure to consumer goods and staples market from an investing perspective is to consider consumer ETFs. Pre-packaged mini-portfolios consisting of holdings aimed at the consumer sector. There is a pretty decent selection of consumer exchange traded funds as well as some inverse and leveraged options, too.
And not only do you gave instant access to the consumer sector with these ETFs, but there are other advantages as well such as the tax benefits they have over other investments and overall trading costs and fee savings.
Not that ETFs don’t have their disadvantages as well, but there are some strong reasons why it makes sense to utilize a consumer ETF instead of mutual funds, stocks, or indexes. But each investing situation is unique, so you have to evaluate on a case by case basis.
But if you do want to consider consumer ETFs to either diversify your portfolio, take a position in the consumer goods market or hedge some consumer staples risk (or any other reason), below is a list of ETFs to research. I’ve broken them out by category – basic, foreign, inverse and leveraged, and specialty consumer funds.
Consumer Goods and Staples ETFs
- FCL - Focus Morningstar Consumer Cyclical Index ETF
- FXG - First Trust Consumer Staples Alpha DEX ETF
- GGEM – EG Shares Consumer Goods GEMS ETF
- IYC - iShares Dow Jones US Consumer Services ETF
- IYK - iShares Dow Jones US Consumer Goods ETF
- PSL – Power Shares Dynamic Consumer Staples ETF
- RHS - Rydex S&P Equal Weight Consumer Staples ETF
- VCR - Vanguard Consumer Discretionary ETF
- VDC - Vanguard Consumer Staples ETF
- VGEM – EG Shares Consumer Services GEMS ETF
- FDIS - Fidelity MSCI Consumer Discretionary Index ETF
- FSTA - Fidelity MSCI Consumer Staples Index ETF
- JHMC - John Hancock Multifactor Consumer Discretionary ETF
- JHMS - John Hancock Multifactor Consumer Staples ETF
- CNSF - iShares Edge MSCI Multi Factor Consumer Staples ETF
- CNDF - iShares Edge MSCI Multi Factor Consumer Discretionary ETF
- EMDI - iShares MSCI EM Consumer Discretionary ETF (This Fund is Now Closed)
Foreign Consumer ETFs
- AXSL - iShares MSCI ACWI ex US Consumer Staples Sector Index ETF
- IPD - SPDR S&P International Consumer Discretionary Sector ETF
- IPS - SPDR S&P International Consumer Staple Sector ETF
- RXI - iShares S&P Global Consumer Discretionary ETF
Inverse and Leveraged Consumer ETFs
- SCC – Ultra Short Consumer Services Pro Shares ETF
- SZK – Ultra Short Consumer Goods Pro Shares ETF
- UCC - Ultra Consumer Services Pro Shares ETF
- UGE - Ultra Consumer Goods Pro Shares ETF
Specialty Consumer ETFs
- FCD - Focus Morningstar Consumer Defensive Index ETF
As more consumer ETFs are launched (or even de-listed), I will update this list, so be sure to check back often for adjustments.
Also, no investment is risk free, so know the impact each exchange trade fund (or note) can have on your portfolio or strategy. Research each find individually and watch how they react to different market conditions. If you have any questions or concerns, do not hesitate to consult your broker, your financial advisor, or a certified investing professional.
Be especially careful with leveraged and inverse ETFs. As they are more for an advanced trading strategy and structured very differently from normal ETFs. So thorough research on those funds is required. Here are some great places to start.
Once you feel you’ve conducted your due diligence and understand your risks and rewards, then you are ready to trade. Good luck with your investing strategy, which now includes consumer ETFs.