iShares US Consumer Staples ETF Posts 12.7% Return with 0.38% Fee
The iShares US Consumer Staples ETF’s 0.38% expense ratio undercuts the 0.60% fee of the First Trust Nasdaq Food & Beverage ETF, while delivering 12.7% one-year and 6.9% five-year annualized returns versus 5.6% and 1.0%. With 11.8% in Coca-Cola, it stands to benefit from the company’s Q4 earnings-driven volatility.
1. Fee Advantage Over Rival
The ETF charges a 0.38% expense ratio, undercutting the 0.60% fee of the First Trust Nasdaq Food & Beverage ETF and reducing long-term investor costs in consumer staples exposure.
2. Superior Returns
It delivered a 12.7% annualized return over the past year and 6.9% over five years, outpacing the rival’s 5.6% and 1.0% figures and highlighting stronger performance in both short and medium terms.
3. Major Holdings and Diversification
Key holdings include Coca-Cola at 11.8% of assets, along with a blend of other consumer staples giants, providing broad sector diversification and stable dividend exposure.
4. Earnings-Driven Volatility Opportunity
With Coca-Cola due to report Q4 results and representing nearly 12% of the fund, anticipated earnings-driven price swings could amplify overall ETF performance and create tactical entry points.