Should You Invest in the Fidelity MSCI Consumer Staples Index ETF (FSTA)?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 17 2024
0mins
Source: NASDAQ.COM
Overview of Fidelity MSCI Consumer Staples Index ETF (FSTA): Launched in 2013, FSTA is a passively managed ETF that provides broad exposure to the U.S. consumer staples sector, with low operating expenses of 0.08% and a current asset value of over $1.20 billion.
Performance and Holdings: The ETF has shown a 19.64% increase over the past year, with major holdings including Procter & Gamble, Costco, and Walmart, while maintaining a medium risk profile with a beta of 0.60.
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Analyst Views on PG
Wall Street analysts forecast PG stock price to rise
17 Analyst Rating
10 Buy
7 Hold
0 Sell
Moderate Buy
Current: 147.430
Low
150.00
Averages
164.50
High
180.00
Current: 147.430
Low
150.00
Averages
164.50
High
180.00
About PG
The Procter & Gamble Company is focused on providing branded consumer packaged goods to consumers across the world. The Company’s segments include Beauty, Grooming, Health Care, Fabric & Home Care and Baby, Feminine & Family Care. The Company’s products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. It also sells direct to individual consumers. It has operations in approximately 70 countries. It offers products under brands, such as Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, Secret, SK-II, Braun, Gillette, Venus, Crest, Oral-B, Ariel, Downy, Gain, Tide, Always, Always Discreet, Tampax, Bounty and others.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Stock Performance: Procter & Gamble (PG) closed at $151.41, up 2.7% from the previous trading session, indicating positive market sentiment ahead of its earnings report, outperforming the Consumer Staples sector's 3.53% gain.
- Earnings Expectations: The company is expected to report an EPS of $1.43 on July 29, 2026, reflecting a 3.38% decline year-over-year, while projected revenue of $21.43 billion represents a 2.58% increase, highlighting challenges in a competitive market environment.
- Analyst Ratings: Currently rated #4 (Sell) by Zacks, Procter & Gamble shows cautious market sentiment regarding its short-term outlook, with a slight 0.26% decline in EPS estimates over the past month, suggesting investors should monitor analyst revisions closely.
- Valuation Analysis: With a forward P/E ratio of 20.88, significantly above the industry average of 18.73, and a PEG ratio of 6.27, the market anticipates strong future earnings growth, despite the Consumer Products - Staples industry ranking in the bottom 16% of Zacks Industry Rankings.
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- Rising Medicare Costs: The standard monthly premium for Medicare Part B in 2026 is set at $202.90, reflecting a $17.90 increase from 2025, leading to an annual cost nearing $5,000, which continues to exert financial pressure on retirees.
- Investment Requirement Analysis: To cover the annual $5,000 healthcare bill, investors need approximately $143,000 in capital at a 3.5% yield or about $100,000 at a 5% yield, highlighting the urgent need for stable income sources in retirement planning.
- Yield Comparison: An investment portfolio yielding 3.5% can grow a $5,000 income stream to $19,300 over 20 years, while a 10% yield portfolio remains flat at $5,000, underscoring the significance of long-term investment and compounding returns.
- Retirement Income Planning: Retirees should focus on breaking down healthcare costs, ensuring coverage for Medicare expenses first before addressing other expenditures, thereby optimizing financial management and alleviating economic burdens.
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- Earnings Call Announcement: Procter & Gamble will host a webcast discussion of its fourth quarter earnings results on July 29, 2026, at 8:30 a.m. ET, aimed at providing the latest financial performance insights to media and investors.
- Access to Live Webcast: Media and investors can access the live audio webcast at https://www.pginvestor.com, with the discussion also available for replay, ensuring stakeholders unable to attend live can still receive the information.
- Global Brand Presence: P&G boasts a portfolio of trusted brands, including Always, Ariel, and Gillette, serving consumers in approximately 70 countries, highlighting its strong market influence and leadership in the global consumer goods sector.
- Latest Company Updates: For the latest news and information about P&G and its brands, users can visit https://www.pg.com, ensuring they stay informed about the company's developments and offerings.
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- Fed Rate Decision: The Federal Reserve decided to keep interest rates steady in its June meeting, with expectations of rate hikes before the year ends, aiming for stabilization by 2027, reflecting a cautious optimism about economic recovery.
- Coca-Cola's Strong Performance: As a 'Dividend King', Coca-Cola has raised its dividend for 50 consecutive years, reporting a 10% organic revenue increase in Q1 2026 and an operating margin rise to 35%, showcasing its resilience and growth potential in an inflationary environment.
- Realty Income's Stability: Realty Income, with nearly 15,600 properties primarily leased to large retail chains, offers a 5.1% dividend yield and has paid dividends for 672 consecutive months, demonstrating its stability amid economic fluctuations.
- Procter & Gamble's Reliability: Another 'Dividend King', Procter & Gamble has raised its dividend for 70 years, with Q3 2026 sales up 7% year-over-year and earnings per share up 6%, ensuring long-term revenue growth through essential consumer products.
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- Coca-Cola's Pricing Power: As a Dividend King, Coca-Cola has raised its dividend for over 50 consecutive years, demonstrating its ability to increase prices without curbing demand even amid inflation, thereby ensuring stable cash flow and market position.
- Strong Financial Performance: In Q1 2026, Coca-Cola reported a 10% year-over-year increase in organic revenue, with operating margin rising from 32.9% to 35%, indicating the company's capacity to achieve profit growth despite ongoing economic challenges, which bolsters investor confidence.
- Realty Income's Expansion: Realty Income, with nearly 15,600 properties leased to major retail chains, has substantial capital resources, having deployed $72 billion over the past four years to acquire quality properties, ensuring long-term shareholder returns and a stable 5.1% dividend yield.
- Procter & Gamble's Steady Growth: Another Dividend King, Procter & Gamble has raised its dividend for 70 years, with Q3 2026 sales up 7% and earnings per share up 6%, showcasing its strong competitiveness and reliability in the consumer goods market.
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- Stock Decline: International Business Machines (IBM) shares fell by 1.9% today, making it the worst-performing component in the Dow, reflecting market concerns about its future growth prospects.
- Poor Year-to-Date Performance: Year-to-date, IBM's stock has declined approximately 7.9%, indicating ongoing challenges the company faces in a competitive tech market, which could impact investor confidence.
- Other Component Movements: Within the Dow, Procter & Gamble's stock decreased by 1.6%, while NVIDIA saw a 1.0% increase, highlighting varied market reactions to different companies that may influence portfolio allocations.
- Market Sentiment Fluctuations: IBM's continued decline may prompt investors to reassess its future strategy, especially against the backdrop of rapid changes in the tech industry, potentially leading to broader market sentiment fluctuations.
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