Consumer Staples ETF Anchors 5-ETF Portfolio With 8.49% Returns and 22.1% Max Drawdown
Using five ETFs including a 20% allocation to a consumer staples fund with 0.08% expense ratio, this portfolio produced 8.49% annualized returns from 2001 to 2026. Its maximum drawdown was 22.13%, compared with 55.14% for the S&P 500, while rebalancing quarterly kept costs under 0.09%.
1. Portfolio Overview
This strategy allocates 20% each to consumer staples, health care, utilities, U.S. Treasury bonds and gold ETFs, designed to balance growth and defense across economic cycles.
2. Consumer Staples ETF Role
A consumer staples ETF with a 0.08% expense ratio represents the defensive equity component, benefiting from inelastic demand for essentials like food and household goods during downturns.
3. Historical Performance
Backtested from 2001 through 2026, the portfolio delivered 8.49% annualized returns with a 22.13% maximum drawdown, compared with a 55.14% peak-to-trough drop in the S&P 500 over the same period.
4. Implementation and Costs
The portfolio requires quarterly rebalancing and maintains a weighted average expense ratio below 0.09%, using only low-cost ETFs to minimize fees and simplify maintenance.