5 Best Consumer Staples ETFs

1. iShares US Consumer Staples ETF (NYSE:IYK)

5-Year Performance as of August 14: 65.08%

The iShares US Consumer Staples ETF (NYSE:IYK) is an ETF designed to provide investors exposure to the consumer staples sector within the U.S. equity market. Managed by iShares, a division of BlackRock, the fund aims to track the performance of the Dow Jones U.S. Consumer Goods Index.

A notable holding in the iShares US Consumer Staples ETF (NYSE:IYK) portfolio is Philip Morris International Inc. (NYSE:PM), a tobacco corporation that concentrates on the sale of cigarettes and smoke-free alternatives. These alternatives encompass heat-not-burn, vapor, and oral nicotine products. Philip Morris International Inc. (NYSE:PM) disclosed its Q2 non-GAAP EPS as $1.60 on July 20, accompanied by a revenue figure of $9 billion. These results exceeded Wall Street’s projections by $0.12 and $290 million, respectively.

Ariel Investments made the following comment about Philip Morris International Inc (NYSE:PM) in its first-quarter 2023 investor letter:

“Finally, tobacco maker, Philip Morris International Inc. (NYSE:PM) declined in the period on concerns related to supply-chain disruptions resulting from the war in Ukraine, which we view as temporary. We believe the favorable economics and margin expansion associated with market share gains from the IQOS brand and Reduced Risk Products should yield value creation opportunities in the years ahead. Furthermore, at current trading levels, we think the company’s operating leverage, pricing power, and free cash flow profile offer a margin of safety.”

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