FMD Capital Management

Posts Tagged: xlp

Consumer Staples ETFs Face Technical Test

Written by David Fabian, October 03rd, 2017

Consumer staples stocks have always been known for their relatively low volatility and conservative nature. It’s one of the reasons they are such a prominent aspect of many retirement portfolios and continue to serve as a reassuring equity allocation for countless investors.

These companies are typified by their mature business models and inelastic consumer trends. Think grocery stores, beverage companies, consumer goods, tobacco stocks, and drug store chains. They sell products that are constantly in demand no matter what the overall economy is doing. For this primary reason, they are considered more stable than speculative or growth-oriented stocks.

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Consumer ETFs Preserve Gains Despite Volatile 2015

Written by David Fabian, October 06th, 2015

No matter where we close out the year, stock market investors will remember 2015 as one of the most volatile years since the 2008 financial crisis. In August, the broad-based SPDR S&P 500 ETF (SPY) entered a correction by declining more than 10% from its all-time high. This in turn triggered massive outflows from stock-related ETFs and mutual funds as investors sought shelter in the form of cash and bond equivalents.

Yet despite this concerning drop, several sectors of the market have been able to maintain their leadership positions and remain in positive territory for the year. Both consumer discretionary and consumer staples companies have been able to outperform the market in 2015, albeit in very different ways that bear closer examination.

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The Pros And Cons of Smart Beta ETFs

Written by David Fabian, August 19th, 2014

Many investors have traded in their passive indexes for smart beta ETFs over the last five years as these innovative strategies have shown promising results. The allure of creating a “better investment strategy” is an admirable objective for these semi-active funds. However, investors need to fully understand how the index is constructed and how much more they will pay in fees before deciding to invest in this arena.

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How to Play Lagging Consumer Staples Stocks

Written by David Fabian, February 12th, 2014

Consumer staples stocks have always been known as stalwart anchors for the majority of dividend equity portfolios.  These companies provide essential products and services to consumers that are often thought to be insulated from the threat of a slowing economy.  Think diapers, cigarettes, soda, and drugstores if you want to picture a sector that is known for its inelastic demand and built in consumer base. Read more