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It's Not You, It's Me
You know you're addicted to ETF research when looking at a fund's weightings list makes you viscerally cringe. This was the case when I recently took a closer look at the Consumer Staples Select Sector SPDR
XLP: Good, But 3 Of Its Top Holdings Are Better
Summary
- XLP is a top-heavy way to gain exposure to the consumer staples sector, but that's not a bad thing.
- By comparing XLP to three of its top components, I propose a simple way for investors to likely outperform XLP without adding much risk.
- XLP confirms the phenomenon that ETFs rarely offer the same dividend growth as their individual components.
- With its top holdings having just run up significantly, I rate XLP a hold and recommend investors wait for a pullback to buy.
I'm Value Prof, a market researcher and former investment advisor primarily focusing on utility and consumer stocks, dividend growth strategies, and occasional swing trades. I like to highlight high-quality, undercovered companies that offer a mix of steady growth and rising income. Drawing on my professional background in finance, technology, and entertainment, I aim to help you navigate the stock market and become a smarter, happier investor by offering well-researched, independent, and often contrarian takes on the news, politics, and the macro environment.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of COST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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