KXI ETF

The iShares Global Consumer Staples ETF has underperformed both the market and its U.S. Staples fund counterpart in recent years. I expect the fund to recoup some of this underperformance going forward. However, the Global Consumer Staples fund has a high allocation to U.S. equities and some expensive retail stocks in particular, which limits its appeal to a degree.

The consumer staples sector is slightly underpriced compared to historical norms, with the household product industry appearing particularly appealing. iShares Global Consumer Staples ETF is a global alternative to XLY.

The tobacco and household product industries show good value scores. Other subsectors are close to their baseline in value and quality. iShares Global Consumer Staples ETF is an alternative to XLP, with international diversification and a lesser concentration in the top holdings.

The tobacco industry is undervalued, but its quality metrics are concerning. Food and personal care are overvalued by more than 20% relative to their historical baseline. KXI, a global alternative to XLP.