Investors seeking defensive exposure beyond a broad-based consumer staples exchange-traded fund (ETF) might look to a number of unique funds nonetheless notable for their recent performance. Consumer staples companies appeal to investors when recession fears mount for their supposed resilience in the face of difficult economic conditions.
While this does not necessarily mean these companies will be likely rally candidates—the benchmark Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) has only returned 1.7% year-to-date (YTD) and 4.9% year-over-year (YoY)—it may suggest that they offer some protection compared with riskier bets that may lose ground in these scenarios.
