Consumer Staples ETF (XLP) Hits New 52-Week High

For investors seeking momentum, Consumer Staples Select Sector SPDR Fund XLP is probably on the radar. The fund just hit a 52-week high and is up 19% from its 52-week low price of $65.18/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

XLP in Focus

Consumer Staples Select Sector SPDR Fund offers exposure to companies primarily involved in the development and production of consumer products that cover food and drug retailing, beverages, food products, tobacco, household products and personal products. The product charges 9 bps in annual fees (see: all the Consumer Staples ETFs here).

Why the Move?

The consumer staples segment of the broad stock market has been an area to watch lately, as investors are flocking into defensive sectors in search of cheap stocks. The consumer staples space is home to a variety of items like food & beverages, non-durable household goods, hypermarkets and consumer supercenters that are essential for daily needs. These products see steady demand even during an economic downturn due to their low level of correlation with economic cycles.

More Gains Ahead?

Currently, XLP has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.

Get it free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Consumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.