ETF Expert

Cut rates, but don’t cause bubbles. Stimulate the economy, but don’t bring on "inflated" prices. Say the right thing, whatever that "right thing" may be.

Indeed, the U.S. Federal Reserve has been assigned the daunting task of assuaging the fears of borrowers, employees, CEOs and investors… simultaneously. And yet, there is a sector of every modern economy that tends to perform… no matter what the Fed says or does.

Staples. (No… not the office supply chain.) In developed countries worldwide, we simply do not stop purchasing toothpaste, paper products, noodles, soda, alcohol or cigarettes.

Consumer staples tends to be the least desirable stock segment in a raging bull. Yet, when you’re playing defense, it’s hard to argue against the likes of Pepsi, Phillip Morris or Kraft. (Mac-n-cheese… always in demand.)

But what if you wish to be defensive, and get a slightly higher bang for your consumer staple buck? You think globally.

The iShares S&P Global Consumer Staples (KXI) is up 18% over 1 year, 9% YTD. It’s also flirting with new highs. And… its downside risk in rapid selloffs has not been as dramatic as other segments of the U.S. or international economies.

Granted, there’s a large exposure to U.S. companies. And those who wish to avoid "sin stocks" would have a tough time signing on this dotted line. (Altria/Phillip Morris, British American Tobacco, Reynolds and Anheuser Busch are all on board.)

Nevertheless, if making money in good and bad times is your goal, you’ve got a global approach with iShares S&P Global Consumer Staples (KXI). For every "Bud Light," there’s a "Smirnoff Twist" produced by Diageo. For every "zestfully clean" soap bar produced by Procter & Gamble, there’s a Dove soap cleanser made by Unilever.

Need more proof? Find out how the iShares S&P Global Consumer Staples (KXI) has fared against the iShares S&P Europe 350 Index (IEV) in a feature before the "credit crisis," Global Staples May Be Smartest And Safest.

Disclosure Statement:  As a Registered Investment Advisor, Pacific Park Financial, Inc. may hold positions in the ETFs, mutual funds and/or index funds mentioned above. Investors who are interested in money management services may visit the Pacific Park Financial, Inc. web site.