Surveying Consumer Niche ETFs

July 18, 2014

Consider liquidity, though, before jumping in.

Consumer Niche ETFs

Chart courtesy of StockCharts.com

With the unemployment rate ticking down and the economy heating up, consumption is a big theme in 2014. Investors broadly divide the consumer market into two groups: cyclicals and non-cyclicals (also called discretionary and staples, respectively).

Cyclicals refers to non-essential goods whose consumption depends heavily on the economic cycle—vacations, for example. In contrast, non-cyclicals are goods that people generally purchase in the same quantity regardless of the economic cycle—health care, for example.

Fortunately, a broad range of ETFs offer exposure to specific niches within each consumer sector. These are some of the most interesting:

Be careful though: Some of these ETFs are relatively illiquid, while others are unnecessarily complex. Check out the fund reports for more information.

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