XLP - ETF AI Analysis

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Consumer Staples Select Sector SPDR Fund (XLP)

Rating:69Neutral

Price Target:―

XLP, the Consumer Staples Select Sector SPDR Fund, has a solid overall rating driven mainly by strong, stable leaders like Walmart, PepsiCo, and Monster Beverage, which show healthy financial performance, growth initiatives, and generally supportive technical trends. However, weaker spots such as Colgate-Palmolive and Mondelez, which face leverage, operational, and technical challenges, along with overvaluation concerns in some large holdings like Costco, slightly weigh on the fund’s appeal. The main risk factor is its concentration in consumer staples, meaning performance is closely tied to this single defensive sector rather than being broadly diversified across the market.

Positive Factors

Strong Recent Performance

The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum.

Leading Consumer Staples Holdings

Top positions like Walmart, Costco, and other major household brands have delivered generally strong year-to-date results, supporting the fund’s returns.

Low Expense Ratio

The fund charges a relatively low fee, which helps investors keep more of their returns over time.

Negative Factors

Sector Concentration Risk

Almost all of the ETF’s assets are in the consumer defensive sector, so it may lag when other parts of the market are doing better.

U.S.-Only Exposure

The fund is almost entirely invested in U.S. companies, offering little geographic diversification if the U.S. market faces challenges.

Heavy Reliance on Top Holdings

A small group of large companies makes up a significant portion of the portfolio, increasing the impact if any of these stocks stumble.

XLP vs. SPDR S&P 500 ETF (SPY)

AUM17.39B

RegionNorth America

Expense Ratio0.08%

Beta0.23

IssuerSPDR

Inception DateDec 16, 1998

Dividend Yield2.43%

Asset ClassEquity

Index TrackedS&P Consumer Staples Select Sector

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume26,118,803

30 Day Avg. Volume18,879,229

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

92.26

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering37

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

XLP Summary

XLP is an ETF that follows the S&P Consumer Staples Select Sector index, focusing on companies that sell everyday essentials like food, drinks, and household products. It holds well-known names such as Walmart and Coca-Cola, which tend to see steady demand whether the economy is strong or weak. Investors might consider XLP if they want a more defensive, stabilizing piece in their portfolio with exposure to established, dividend-paying companies. A key risk is that it is heavily concentrated in U.S. consumer staples stocks, so it can still go up and down with that sector and the overall market.

How much will it cost me?The Consumer Staples Select Sector SPDR Fund (XLP) has an expense ratio of 0.08%, which means you’ll pay $0.80 per year for every $1,000 invested. This is lower than average because it’s a passively managed ETF that tracks an index, keeping costs down.

What would affect this ETF?The XLP ETF, focused on U.S. consumer staples, could benefit from stable demand for essential goods, even during economic downturns, as its top holdings include resilient companies like Walmart and Procter & Gamble. However, rising interest rates or inflation could increase costs for these companies, potentially impacting profitability, while regulatory changes in industries like tobacco or beverages could pose additional risks.

XLP Top 10 Holdings

XLP is leaning heavily on U.S. consumer staples giants, with Walmart and Costco doing much of the heavy lifting as their shares keep rising on strong sales and membership-driven growth. Coca-Cola and PepsiCo are more in the “steady sippers” camp, contributing stability rather than fireworks. On the flip side, Procter & Gamble and Mondelez have shown more mixed, stop-and-go performance, occasionally holding the fund back. Overall, this is a concentrated bet on defensive household names and snack-and-soda powerhouses rather than high-flying tech or cyclicals.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
WMT	Walmart	11.68%	$2.00B	$1.03T	21.75%	78 Outperform
COST	Costco	9.28%	$1.59B	$449.22B	-6.25%	72 Outperform
PG	Procter & Gamble	7.71%	$1.32B	$370.79B	-5.78%	69 Neutral
KO	Coca-Cola	6.37%	$1.09B	$342.24B	13.44%	75 Outperform
PM	Philip Morris	5.91%	$1.01B	$285.88B	21.94%	61 Neutral
CL	Colgate-Palmolive	4.69%	$802.80M	$77.10B	9.33%	63 Neutral
PEP	PepsiCo	4.58%	$783.66M	$221.29B	12.74%	78 Outperform
MO	Altria Group	4.50%	$770.58M	$111.70B	25.18%	64 Neutral
MDLZ	Mondelez International	4.41%	$754.97M	$76.73B	-2.99%	62 Neutral
MNST	Monster Beverage	3.60%	$615.65M	$81.00B	60.92%	80 Outperform

XLP Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

81.50

Positive

100DMA

79.38

Positive

200DMA

79.59

Positive

Market Momentum

MACD

2.19

Negative

RSI

68.59

Neutral

STOCH

61.42

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLP, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 85.58, equal to the 50-day MA of 81.50, and equal to the 200-day MA of 79.59, indicating a bullish trend. The MACD of 2.19 indicates Negative momentum. The RSI at 68.59 is Neutral, neither overbought nor oversold. The STOCH value of 61.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLP.

XLP Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
XLP	―	―	$17.39B	0.08%	―
VGT	―	―	$110.07B	0.09%	―
XLK	―	―	$87.67B	0.08%	―
XLF	―	―	$52.45B	0.08%	―
XLV	―	―	$41.24B	0.08%	―
XLE	―	―	$36.26B	0.08%	―

Performance Comparison

XLP

Consumer Staples Select Sector SPDR Fund

88.04

8.97

11.34%

VGT

Vanguard Information Technology ETF

―

XLK

Technology Select Sector SPDR Fund

―

XLF

Financial Select Sector SPDR Fund

―

XLV

Health Care Select Sector SPDR Fund

―

XLE

Energy Select Sector SPDR Fund

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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