iShares Global Consumer Staples ETF’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy gets an Average Process Pillar rating.  High quality exposure is attributed to stocks with low financial leverage and strong returns on equity. And low volatility exposure is rooted in stocks that have a lower standard deviation of returns. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Procter & Gamble

Costco

National Energy Services Reunited

PepsiCo

Coca-Cola

Walmart

Philip Morris

Osisko Gold Royalties

Mondelez

Target

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. iShares Global Consumer Staples ETF earns an Average Process Pillar rating. The leading factor in the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 92% also contributes to the process. Lastly, the process is limited by the fund's unimpressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the S&P Global 1200 Consumer Staples (Sector) Capped IndexTM.  The fund generally invests at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index and may invest up to 20% of its assets in certain futures, options and swap contracts, and cash and cash equivalents. The index measures the performance of global equities in the consumer staples sector. 

 The portfolio has allocations in its top two sectors, consumer defensive and consumer cyclical, that are similar to the category. The sectors with low exposure compared to category peers are healthcare and industrials; however, the allocations are similar to the category. The portfolio is positioned across 138 holdings and is diversified among those holdings. In its most recent portfolio, 48.2% of the strategy's assets were concentrated in the top 10 fund holdings, as opposed to the category’s 53.8% average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 13% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

iShares Global Consumer Staples ETF benefits considerably from its equity team, earning it an Above Average People Pillar rating. There are three managers listed on the fund: Paul Whitehead, Jennifer Hsui, Greg Savage. Experience on the team is abundant, with 18 years of average portfolio management experience. Together, they manage a total of 257 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares Global Consumer Staples ETF

KXI tracks a market-cap-weighted index of global consumer staples companies, drawn from 1,200 global stocks selected by S&P.

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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.

KXI: Consumer Staples Dashboard For February

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Some consumer discretionary stocks have performed better than others. Luxury, homebuilding, and travel have been a bright spots.

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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.

KXI: Consumer Staples Dashboard For August

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Inflation is hot across the globe. The Russia-Ukraine war, the supply-chain woes resulting from the pandemic and the resultant rally in commodity prices have amplified inflation.

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Consumer Staples is the third-most overvalued sector. No industry is really attractive combining value and quality scores. Nonetheless, staple and food retail is the best-looking one.

KXI: Consumer Staples Dashboard For June

For investors seeking momentum, iShares Global Consumer Staples ETF KXI is probably on radar. The fund just hit a 52-week high and is up 21.1% from its 52-week low of $52.79 per share.

Consumer Staples ETF (KXI) Hits New 52-Week High

This is the second most overvalued sector, and no industry looks really attractive. The most overpriced one is personal care products.

KXI: Consumer Staples Dashboard For March

Colgate-Palmolive

Nasdaq F&B Shs Nasdaq Food & Beverage

Johnson & Johnson

Kellogg

Pandora Media

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40% of the online merchandise for U.S. retailers is on sale as we enter Black Friday week of 2022. The average percent discount in November is 36.3%; this has come down from the YTD levels of 37.6% and is significantly below the pre-pandemic levels.

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The mismatch between supply and demand within the retail space has reversed in advance of this year's holiday shopping season. Higher prices that retailers have successfully implemented since the pandemic are not going to reverse entirely.

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KXI trades at almost the same multiple as IYK. However, there is more downtrading risk and private label competition in European consumer staples stocks.

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Global stocks have been on a wild ride this year due to rising recession risks.

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KXI has been very resilient in price, but if a recession hits hard, the same security might not present itself in the fundamentals of the portfolio companies. Downtrading is a real risk for consumer staples investors.

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The tobacco industry stays on top of the sector regarding valuation and quality scores. Food and staples retail is the most overvalued industry.

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The current environment calls for capital preservation. The 10Y/2Y yield spread signals higher recession risk.

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Retail sales have posted gains in four consecutive months but November is the slowest pace of the four. Most categories were up in November though breadth was weaker than in October.

Retail Spending Posted A Modest Gain In November

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The global food price index has been posting monthly increases for 12 straight months. KXI's top holding, Nestle, expects inflation to be a persistent phenomenon this year and recently undertook price increases.

KXI: A Suitable Option To Counter Potential Inflation And Volatility Risks

The iShares Global Consumer Staples ETF provides exposure to 91 Consumer Staples equities worldwide for an annual cost of 0.46%. In the last 10 years, a U.S.-only Consumer Staples ETF has been the better investment by about 2% per year.

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Nearby support levels suggest that the underfollowed the consumer staples sector could be one to watch over the weeks and months ahead.

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The global consumer staples fund hits a new 52-week high recently. Can it soar further?

News for iShares Global Consumer Staples ETF ETF (KXI)