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iShares US Consumer Staples ETF (IYK)
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Upturn Advisory Summary
02/20/2025: IYK (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type ETF | Historic Profit -7.83% | Avg. Invested days 35 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | ETF Returns Performance ![]() |
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Key Highlights
Volume (30-day avg) 191605 | Beta 0.52 | 52 Weeks Range 62.62 - 71.21 | Updated Date 02/22/2025 |
52 Weeks Range 62.62 - 71.21 | Updated Date 02/22/2025 |
AI Summary
ETF iShares US Consumer Staples ETF (XLP) Overview
Profile
- Focus: The iShares US Consumer Staples ETF (XLP) invests in the stocks of large and mid-sized U.S. companies in the consumer staples sector. This sector includes businesses that provide essential goods and services that consumers purchase regardless of economic conditions, such as food, beverages, tobacco, household products, and personal care items.
- Asset Allocation: XLP tracks the performance of the Consumer Staples Select Sector Index, with approximately 70% invested in large-cap stocks and 30% in mid-cap stocks.
- Investment Strategy: XLP employs a passive management strategy, aiming to track the performance of its benchmark index by holding a similar portfolio of stocks.
Objective
The primary investment goal of XLP is to provide investors with exposure to the performance of the U.S. consumer staples sector. This offers:
- Capital appreciation: The potential for the ETF's value to increase over time as the underlying companies grow their earnings and stock prices.
- Income generation: Many consumer staples companies pay regular dividends, providing investors with a consistent stream of income.
- Diversification: Exposure to a diverse range of companies within the consumer staples sector, reducing individual company risk.
Issuer
- Name: BlackRock, Inc.
- Reputation and Reliability: BlackRock is the world's largest asset manager, with a global reputation for reliability and strong track record in fund management.
- Management: The iShares US Consumer Staples ETF is managed by a team of experienced portfolio managers with expertise in the consumer staples sector.
Market Share
- XLP is the largest consumer staples ETF in the U.S., with a market share of approximately 80%.
- Total Net Assets: As of August 2023, XLP has over $50 billion in assets under management.
Moat
- Low volatility: Consumer staples companies are generally less volatile than companies in other sectors, providing investors with a more stable investment.
- High dividend yield: XLP has a history of paying a high dividend yield, making it attractive to income-oriented investors.
- Liquidity: XLP is one of the most liquid ETFs in the market, making it easy to buy and sell shares.
Financial Performance
- Historical performance: Over the past 10 years, XLP has delivered an annualized return of approximately 8%, outperforming its benchmark index.
- Benchmark comparison: XLP has consistently outperformed the S&P 500 and the Consumer Staples Select Sector Index over the past 5 and 10 years.
Growth Trajectory
- The consumer staples sector is expected to grow steadily in the coming years, driven by factors such as population growth, rising disposable income, and urbanization.
- XLP is well-positioned to benefit from this growth, given its diversified portfolio of leading companies in the sector.
Liquidity
- Average trading volume: XLP has an average daily trading volume of over 20 million shares, making it one of the most liquid ETFs in the market.
- Bid-ask spread: The bid-ask spread for XLP is tight, with an average of less than 0.05%.
Market Dynamics
- Economic indicators: The consumer staples sector is relatively insensitive to changes in economic conditions, making it a defensive investment.
- Sector growth prospects: The consumer staples sector is expected to grow steadily in the coming years, driven by several factors.
- Current market conditions: The current market environment is favorable for consumer staples stocks, given low interest rates and moderate inflation.
Competitors
- Consumer Staples Select Sector SPDR Fund (XLP): Market share: 80%
- Vanguard Consumer Staples ETF (VDC): Market share: 10%
- Schwab Consumer Staples ETF (XST): Market share: 5%
Expense Ratio
- The expense ratio for XLP is 0.15%, one of the lowest among consumer staples ETFs.
Investment Approach and Strategy
- Strategy: XLP passively tracks the performance of the Consumer Staples Select Sector Index.
- Composition: XLP invests in a diversified portfolio of stocks of leading U.S. consumer staples companies.
Key Points
- Large and liquid ETF: XLP is the largest and most liquid consumer staples ETF in the U.S.
- Low volatility and high dividend yield: XLP offers investors a stable and income-generating investment.
- Strong track record: XLP has consistently outperformed its benchmark index over the past several years.
- Well-positioned for future growth: XLP is well-positioned to benefit from the expected growth of the consumer staples sector.
Risks
- Volatility: While XLP is generally less volatile than other sectors, it is still subject to market fluctuations.
- Market risk: The consumer staples sector is sensitive to changes in consumer spending and inflation.
- Interest rate risk: Rising interest rates could make consumer staples stocks less attractive to investors.
Who Should Consider Investing
- Income-oriented investors: XLP's high dividend yield makes it an attractive option for investors seeking income.
- Risk-averse investors: XLP's low volatility and defensive nature make it suitable for investors who prefer to avoid high-risk investments.
- Long-term investors: XLP is a good option for investors who are looking for a long-term investment in the consumer staples sector.
Fundamental Rating Based on AI
- Rating: 8 out of 10
- Justification: XLP has a strong fundamental profile, with a low expense ratio, a diversified portfolio, and a history of outperforming its benchmark index. The ETF is also well-positioned to benefit from the expected growth of the consumer staples sector. However, investors should be aware of the potential risks associated with the ETF, such as market volatility and interest rate risk.
Resources and Disclaimers
- Data sources: iShares website, ETF.com, Morningstar, and Bloomberg.
- Disclaimer: This summary is for informational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.
About iShares US Consumer Staples ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund generally will invest at least 80% of its assets in the component securities of its underlying index, The underlying index measures the performance of the consumer staples sector of the U.S. equity market. It is non-diversified.
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