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from the world of economics and financeLaunched on 06/12/2000, the iShares U.S. Consumer Staples ETF (IYK) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Staples - Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.
The fund is sponsored by Blackrock. It has amassed assets over $1.24 billion, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. IYK seeks to match the performance of the Dow Jones U.S. Consumer Goods Index before fees and expenses.
The Russell 1000 Consumer Staples RIC 22.5/45 Capped Index measures the performance of the consumer goods sector of the U.S. equity market.
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.59%.
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Staples sector--about 88.60% of the portfolio. Healthcare and Materials round out the top three.
Looking at individual holdings, Procter & Gamble (PG) accounts for about 17.05% of total assets, followed by Coca-Cola (KO) and Pepsico Inc (PEP).
The top 10 holdings account for about 65.54% of total assets under management.
The ETF has added roughly 1.25% so far this year and was up about 5.79% in the last one year (as of 01/30/2025). In that past 52-week period, it has traded between $63.29 and $72.12.
The ETF has a beta of 0.70 and standard deviation of 12.97% for the trailing three-year period, making it a medium risk choice in the space. With about 59 holdings, it effectively diversifies company-specific risk.
IShares U.S. Consumer Staples ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IYK is a good option for those seeking exposure to the Consumer Staples ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Staples ETF (VDC) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF (XLP) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $7.07 billion in assets, Consumer Staples Select Sector SPDR ETF has $16.76 billion. VDC has an expense ratio of 0.10% and XLP charges 0.09%.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares U.S. Consumer Staples ETF (IYK): ETF Research Reports
CocaCola Company (The) (KO) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
Consumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports
Vanguard Consumer Staples ETF (VDC): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.