Consumer Staples' ETFs Hitting New Highs
Zacks Investment Research | Dec 04, 2019 11:10PM ET
Being defensive in nature, the consumer staples sector has been on a tear this year. The space is home to a variety of items like food & beverages, non-durable household goods, hypermarkets and consumer supercenters that are essential for daily needs. These products see steady demand even during an economic downturn due to their low level of correlation with economic cycles.
As such, these generally act as a safe haven amid political and economic turmoil. Stocks in these sectors generally outperform during periods of low growth and high uncertainty.
And guess what? Trade dispute and geopolitical tensions have led to strong growth in the sector. Though uncertainty surrounding the U.S.-China trade deal has been lingering through the year, the new tariff drama has made investors jittery heading into the busiest holiday season (read: Zacks Investment Research
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