iShares Global Consumer Staples ETF (KXI)
PG Stock Weighting: 7.16%
The iShares Global Consumer Staples ETF (KXI) seeks to replicate the performance of the S&P Global 1200 Consumer Staples Sector Index, a collection of 100 companies including Procter & Gamble stock that is selected from the S&P Global 1200.
KKI’s top 10 holdings account for 43.7% of its $641 million in total net assets with PG stock the second-largest holding at 7.16%. While the VDC is 99.2% invested in U.S. companies, the KKI has just 51.4% invested in America, with the U.K. and Switzerland the next two highest country weightings at 14.6% and 7.6% respectively.
An alternative to KKI is iShares’ Global 100 ETF (IOO), also 100 stocks, but with a slightly smaller American concentration. The big problem with IOO is that PG stock accounts for just 2.45% of its portfolio, giving investors far less exposure to the consumer staples giant.
The management expense ratio for KKI is 0.48%, which is more expensive than all but two of the top 10 global equity ETFs (in terms of net assets) according to ETF Database. However, the name of the game here is to gain exposure to PG stock while providing consumer staples diversification beyond one company, so the higher MER isn’t a deal-breaker.