Consumer Staples Select Sector ETF (XLP)
Speaking of products and services that won’t go out of style any time soon, the XLP is the quintessential home for stuff we’ve been using for decades and will continue to consume for decades to come.
This is decidedly unsexy fodder such as shampoo, diapers, bread and beyond — but stuff we need day in, day out.
XLP’s top holdings are a who’s who of dividend stalwarts: Procter & Gamble (PG). Coca-Cola (KO). Philip Morris International (PM). Walmart (WMT). Most of these companies are at the very least deeply entrenched, and some even have decent growth prospects thanks to international sprawl. And not that anything in life is guaranteed, but dividend cuts are a distant worry in this group.
Ultimately, these stocks — and so by proxy, this ETF — are bulletproof long-term investments. Jim Woods points out that the XLP will “keep doing well if and when things get dicey,” and I couldn’t agree more. I think this is the long-term winner of the group.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long SO and VZ.