Should You Invest in the Consumer Staples Select Sector SPDR ETF (XLP)?

Core Viewpoint - The Consumer Staples Select Sector SPDR ETF (XLP) is a passively managed ETF that provides broad exposure to the Consumer Staples sector, which is currently ranked at the bottom 0% among Zacks sectors [2][3]. Group 1: Fund Overview - Launched on December 16, 1998, XLP has amassed over $15.98 billion in assets, making it the largest ETF in the Consumer Staples - Broad segment [3]. - The fund aims to match the performance of the Consumer Staples Select Sector Index, which represents the consumer staples sector of the S&P 500 Index [3]. Group 2: Costs and Performance - XLP has an annual operating expense ratio of 0.08%, making it the least expensive product in its category, with a 12-month trailing dividend yield of 2.52% [4]. - The ETF has gained approximately 2.93% year-to-date but is down about 1.98% over the past year, trading between $76.23 and $84.26 in the last 52 weeks [7]. Group 3: Holdings and Sector Exposure - The ETF is fully allocated to the Consumer Staples sector, with Walmart Inc (WMT) making up about 9.98% of total assets, followed by Costco Wholesale Corp (COST) and Procter & Gamble Co (PG) [5][6]. - The top 10 holdings constitute approximately 60.76% of total assets under management [6]. Group 4: Risk and Alternatives - XLP has a beta of 0.54 and a standard deviation of 12.36% over the trailing three-year period, indicating a medium risk profile [7]. - The ETF carries a Zacks ETF Rank of 3 (Hold), suggesting it is a sufficient option for investors seeking exposure to the Consumer Staples sector [8]. Other alternatives include Fidelity MSCI Consumer Staples Index ETF (FSTA) and Vanguard Consumer Staples ETF (VDC) [9].