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Consider An Equal-Weight Approach To This Hot Sector's ETFs

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As many investors by now know, “hot sector” in this instance refers to consumer staples. That is right. A sector with a reputation for being boring, the group that is the fifth-largest sector weight in the s&P 500, is setting the market on fire on this year.

Well, the 1.2 percent year-to-date gain for the Consumer Staples Select Sector SPDR (NYSE: XLP) is “on fire” relative to the standards currently being set by this market. Just off the pace is XLP's equal-weight equivalent the Guggenheim S&P Equal Weight Consumer Staples ETF (NYSE: RHS), which is up 1.1 percent this year.

Equal weighting is widely considered one of the forefathers of the strategic or smart beta ETF movement and one reason that the methodology is believed to be effective ...

/www.benzinga.com/trading-ideas/long-ideas/16/02/6515733/consider-an-equal-weight-approach-to-this-hot-sectors-etfs alt=Consider An Equal-Weight Approach To This Hot Sector's ETFs>Full story available on Benzinga.com

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