Consumer Staples Are Up Almost 20% While the S&P 500 Struggles. Retirees Are Paying Attention.

"KXI tracks a global index of companies selling things people buy regardless of economic conditions: food, beverages, household products, and tobacco. The fund holds roughly 55% of its identifiable holdings in international names, including Nestlé, Unilever, and Diageo, giving it exposure outside the US that its domestic counterpart Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP) doesn't offer."

"iShares Global Consumer Staples ETF (NYSEARCA:KXI) has meaningfully outpaced the S&P 500 over the past year - returning 18.07% versus the index's 15.11% - while taking on less volatility, a pattern consistent with how defensive funds behave when consumer sentiment is depressed."

"That outperformance reflects the earnings durability of KXI's largest holdings. Walmart has been gaining grocery market share and expanding internationally, with Q4 FY26 revenue up 5.6% year-over-year. Costco's 89.7% membership renewal rate signals the kind of sticky consumer loyalty that holds up in downturns."

KXI tracks a global index of consumer staples companies selling essential products like food, beverages, household items, and tobacco. The fund holds approximately 55% in international companies including Nestlé, Unilever, and Diageo, providing geographic diversification beyond domestic alternatives. Top holdings Walmart and Costco anchor the portfolio with demonstrated earnings resilience through economic cycles. KXI yielded 2.27% with a 0.39% expense ratio and semi-annual distributions. Over the past year, KXI returned 18.07% versus the S&P 500's 15.11%, demonstrating defensive characteristics during periods of depressed consumer sentiment. Walmart's grocery market share gains and 5.6% revenue growth, Costco's 89.7% membership renewal rate, and Coca-Cola's 63-year dividend growth streak exemplify the earnings durability and pricing power of staples holdings.

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