Summary
- Our concern previously for the IYK was the possibility of downtrading occurring in the product portfolios of the owned companies.
- P&G was the most dangerous area we thought, but it is managing EPS growth regardless. Likewise, Pepsi and PM are resisting downtrading it seems.
- Other brands like Coca-Cola are seeing slight declines in profits despite pricing efforts.
- The godsend of IYK seems to be that it's US exposed, where private label doesn't have the same penetration and exposure.
- The ETF is too expensive, but we acknowledge things might be better for these companies than we originally thought.
For further details see:
IYK Is Pricing Up While Avoiding Downtrading Effects