Fidelity MSCI Consumer Staples Index ETF

FSTA

Market cap $1.36B

Consumer pessimism and market volatility may push investors toward defensive ETFs, strengthening the appeal of consumer staple funds.

The Fidelity MSCI Consumer Staples Index ETF is good for diversification, low costs, and competitive returns versus peers, despite high valuations. FSTA's top holdings, WMT, COST, and PG, drive sector performance and exhibit stable cash flows, robust dividend safety, and growth grades. The consumer staples sector trades at historically elevated valuations, justified by market demand for stability amid high global debt and persistent inflation.

Consumer staples ETFs including State Street Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples Index Fund ETF Shares (VDC), and Fidelity MSCI Consumer Staples Index ETF (FSTA) all carry beta around 0.66-0.69, meaning they decline roughly two-thirds as much as the broader market during selloffs, preserving capital when growth stocks crater.

Looking for broad exposure to the Consumer Staples - Broad segment of the equity market? You should consider the Fidelity MSCI Consumer Staples Index ETF (FSTA), a passively managed exchange traded fund launched on October 21, 2013.

FSTA charges a much lower expense ratio and is significantly larger than RSPS RSPS offers a higher dividend yield, while FSTA has delivered stronger recent returns and shallower drawdowns FSTA holds over 100 stocks with a heavy tilt to mega-cap staples, while RSPS equally weights just 35 stocks in the sector

FSTA charges a much lower expense ratio and sports a higher dividend yield than PBJ. PBJ delivered a stronger one-year return, while FSTA has a slightly deeper five-year max drawdown.

VDC and FSTA track nearly identical portfolios of U.S. consumer staples stocks, with similar sector weights and top holdings. FSTA offers a similar expense ratio and dividend yield to VDC, but VDC has far greater assets under management.

FSTA charges a much lower expense ratio but offers a slightly smaller dividend yield than IYK. FSTA delivered stronger 1-year and 5-year total returns, though it experienced a marginally deeper drawdown.

FSTA offers a much lower expense ratio and greater diversification than FTXG. FSTA has posted stronger recent returns and a shallower five-year drawdown.

What we're looking at may be the most paradoxical environment in decades.