The top five holdings in this ETF are: The Estee Lauder Companies Inc Class A (EL, 3.38% of assets); Costco Wholesale Corp (COST, 3.30%); Kimberly-Clark Corp (KMB, 3.29%); Clorox Co (CLX, 3.25%); and Church & Dwight Co Inc (CHD, 3.21%).
Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS)
From Sound Advice
Invesco S&P 500 Equal Weight Consumer Staples ETF is unique because it invests equal amounts in a collection of 33 consumer staple stocks within the S&P 500 index.
Consumer staples are those unexciting products we use every day without much thought, ranging from food, beverages (including alcohol), household goods (including cleaning supplies), hygiene products, and tobacco. These are products that people are unable (or unwilling) to remove from their budgets regardless of their financial situation.
The nature of these products makes this sector defensive and much less vulnerable to recessions and bear markets.
RHS rebalances the investments at the beginning of each calendar quarter, which has given RHS a superior performance over other consumer staples funds because it has given investors exposure to many consumer staple stocks that are under-weighted in most other portfolios, making those stocks targets for new capital.
Gray Cardiff, Sound Advice, soundadvice-newsletter.com, 800-825-7007, July 30, 2021