Consumer Staples Fund Closes +0.5% as Large Retailers Lead

On Friday, September 25, Consumer Staples Select Sector SPDR Fund, an exchange-traded fund trading under ticker XLP, closed +0.5% at $82.08. The Consumer Staples sector recorded +0.5% on a cap-weighted basis compared to +0.2% on an equal-weighted basis, showing that top holdings drove the fund's move. Quality inside the sector is solid, with 53.8% of graded assets held in companies graded A or B. Market breadth was balanced, with 50.0% of sector members advancing on the session. Performance was led by Keurig Dr Pepper Inc at +3.5% and Costco Wholesale Corp at +2.9%, while General Mills Inc finished at -3.4%. That strength at the top came as major retail names found support after Costco topped earnings expectations despite a one-time tariff-refund item.

The Drivers

Costco helped anchor the sector after reporting fiscal fourth-quarter results. Although quarterly adjusted earnings included a 15-cent per share tariff-refund benefit, the company beat overall earnings estimates. Fellow sector leader Keurig Dr Pepper Inc finished the session +3.5%, though our sources show no company-specific catalyst behind the beverage maker's move.

By contrast, General Mills Inc closed -3.4%. The packaged food producer continued to see pressure following its recent earnings release, where analysts pointed to concerns over an ongoing turnaround and noted that more work remains to be done. Elsewhere in retail, grocery chain Kroger drew scrutiny after a study reported recurring pricing discrepancies at checkout.

Fund Profile and Broader Context

The sector's session occurred in a broadly supportive market, where 8 of the 11 sectors rose. Over wider timeframes, XLP has moved -4.9% over the past month and stands at -2.4% over the past 100 sessions. Longer term, the fund is +0.4% over the past six months and sits at +5.5% over the past twelve months.

For investors using the fund, an expense ratio of 0.08% provides low-cost access across $14.5 billion in sector assets. In this sector, companies graded A or B represent 53.8% of the fund's graded assets. Companies graded A or B have stronger fundamentals, and historically they have carried a lower risk of large drawdowns than companies graded D or E.