Should You Invest in the iShares U.S. Consumer Staples ETF (IYK)?

Launched 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%.Index DetailsThe 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.CostsSince 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%.Sector Exposure and Top HoldingsETFs 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.Performance and RiskThe 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.AlternativesIShares 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%.Bottom LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 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 ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks