ISHP - Consumer Staples ETFs: Thinking Outside Of The Big Box

2024-06-07 08:00:00 ET

Summary

• Recently, the consumer staples sector - including big box and discount retailers - has outperformed the consumer discretionary sector.
• The thesis for investing in staples becomes clearer in an uncertain market.
• E-commerce sales tend to be higher-margin than traditional retail sales due to factors like a lower investment in store display and a shorter delivery chain.

Despite uncertainty in consumer strength, consumer discretionary stocks still pulled ahead of consumer staples stocks for most of 2023. That was driven by mega-cap stocks like Amazon (AMZN) and Tesla (TSLA). But recently, the consumer staples sector - including big box and discount retailers - has outperformed the consumer discretionary sector. The two segments fight for consumer wallet share....

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