The S&P 500 Consumer Staples Index is a sectoral subset of the S&P 500, representing the performance of companies in the consumer staples sector. More specifically, it “comprises those companies included in the S&P 500 that are classified as members of the GICS consumer staples sector,” according to S&P Global.
S&P 500 Consumer Staples Index Price & Chart
The companies are involved in producing or distributing essential goods such as food, beverages, and household products—products that consumers typically purchase regardless of economic conditions.
Consumer staples are often considered a defensive sector due to their stability and resilience during economic downturns. The index includes well-known companies such as Procter & Gamble, Coca-Cola, and Walmart, providing investors with focused exposure to this critical segment of the economy. There are currently 38 companies in the index.
SP500-30 Index Performance Over Time
The S&P 500 Consumer Staples Index has generally been less volatile than the broader market, often outperforming during periods of economic uncertainty or market downturns. In 2024, the index performed strongly, despite the pullback from around September.
The index is rebalanced quarterly in March, June, September and December. The top 10 constituents make up 77.5% of the index.
| Period (To Early 2025) | Total Return |
|---|---|
| 1-Year Return | +11.98% |
| 3-Year Return | +1.99% |
| 5-Year Return | +5.70% |
| 10-Year Return | +5.50% |
Consumer Staples Forecast
The Bull Argument: Analysts at Fidelity said they believe 2025 “could represent a return to normal for the consumer staples sector.” In a recent article, the firm told investors that a strong economy, solid consumer balance sheets, and a supportive Fed “could help the sector perform better than the broader market.” While Fidelity believes the sector could be poised to weather new tariffs, it acknowledges that a strong dollar “could impede international growth.”
Nevertheless, Fidelity says, opportunities exist in undervalued companies, particularly in soft drinks and spirits. “Overall, consumer demand is stable, consumer balance sheets remain strong, employment is healthy, and real wage growth is steady. With the Federal Reserve beginning to cut rates, I believe the sector’s outlook is positive,” stated Ben Shuleva, a Fidelity Sector Portfolio Manager.
The Bear Argument: On the other hand, while the sector offers stability, its defensive nature means it may lag in times of strong economic growth or market optimism. In addition, rising input costs and competition from private-label brands could also pressure margins for some companies.
Our View: Even so, consumer staples stocks offer investors a way to focus on stability and consistent returns. While they are not significant, the consumer staples sector can provide some balance to your portfolio. It is particularly attractive for those seeking defensive exposure or steady dividend income. However, it may not be the best choice for investors looking for rapid growth or high capital appreciation.
Who Should Invest in the S&P 500 Consumer Staples?
For those interested in the sector, the iShares S&P 500 Consumer Staples Sector UCITS ETF is a fund that tracks the index. There is also the Invesco S&P 500 Equal Weight Consumer Staples ETF, which is based on the S&P 500 Equal Weight Consumer Staples Index.
However, market participants should make sure the ETF and investment overall are suitable for their investing characteristics. Consumer staples ETFs may be more suited to:
- Risk-averse investors: Given the fact it is a defensive sector, consumer staples stocks and ETFs tracking the S&P 500 Consumer Staples index may be better suited to those seeking stability and lower volatility in their portfolios.
- Defensive investors: The above also goes for investors focused on defensive stocks. The index is a strong option during periods of economic uncertainty or market turbulence.
- Income-focused investors: Investors looking for companies with reliable dividend yields may also want to look at consumer staples stocks. The sector’s dividend yields are appealing for income-oriented portfolios.
Diversification Seekers: Adding exposure to consumer staples stocks can help balance a portfolio that may be heavily weighted towards cyclical or growth-oriented sectors.
