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Should You Invest in the iShares U.S. Consumer Staples ETF (IYK)?
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The iShares U.S. Consumer Staples ETF (IYK - Free Report) was launched on 06/12/2000, and is a passively managed exchange traded fund designed to offer 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.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $1.63 billion, making it one of the larger 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.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 2.41%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Staples sector--about 90.90% of the portfolio.
Looking at individual holdings, Procter & Gamble (PG - Free Report) accounts for about 16.53% of total assets, followed by Pepsico Inc (PEP - Free Report) and Coca-Cola (KO - Free Report) .
The top 10 holdings account for about 65.66% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Consumer Staples ETF has lost about -2.86% so far, and is up about 3.29% over the last 12 months (as of 09/14/2023). IYK has traded between $179.30 and $210.04 in this past 52-week period.
The ETF has a beta of 0.75 and standard deviation of 14.45% for the trailing three-year period, making it a medium risk choice in the space. With about 57 holdings, it effectively diversifies company-specific risk.
Alternatives
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 - Free Report) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF (XLP - Free Report) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $6.86 billion in assets, Consumer Staples Select Sector SPDR ETF has $16.86 billion. VDC has an expense ratio of 0.10% and XLP charges 0.10%.
Bottom Line
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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Should You Invest in the iShares U.S. Consumer Staples ETF (IYK)?
The iShares U.S. Consumer Staples ETF (IYK - Free Report) was launched on 06/12/2000, and is a passively managed exchange traded fund designed to offer 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.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $1.63 billion, making it one of the larger 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.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 2.41%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Staples sector--about 90.90% of the portfolio.
Looking at individual holdings, Procter & Gamble (PG - Free Report) accounts for about 16.53% of total assets, followed by Pepsico Inc (PEP - Free Report) and Coca-Cola (KO - Free Report) .
The top 10 holdings account for about 65.66% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Consumer Staples ETF has lost about -2.86% so far, and is up about 3.29% over the last 12 months (as of 09/14/2023). IYK has traded between $179.30 and $210.04 in this past 52-week period.
The ETF has a beta of 0.75 and standard deviation of 14.45% for the trailing three-year period, making it a medium risk choice in the space. With about 57 holdings, it effectively diversifies company-specific risk.
Alternatives
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 - Free Report) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF (XLP - Free Report) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $6.86 billion in assets, Consumer Staples Select Sector SPDR ETF has $16.86 billion. VDC has an expense ratio of 0.10% and XLP charges 0.10%.
Bottom Line
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.