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
Should l Buy PG?
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: 143.360
Low
150.00
Averages
164.50
High
180.00
Current: 143.360
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.
Procter & Gamble: Investment Opportunity Amid Stock Price Decline
- Stable Sales Growth: Despite facing economic pressures like high inflation, Procter & Gamble reported a 3% increase in adjusted sales for the quarter ending March 31, with volume contributing 2 percentage points, demonstrating resilience in the essential consumer goods market.
- Dividend Appeal: With an 8.2% drop in share price over the past year, Procter & Gamble offers a 3% dividend yield, nearly triple the S&P 500's 1.1%, allowing shareholders to enjoy stable cash flow while waiting for stock recovery.
- Improved Valuation: The company's price-to-earnings (P/E) ratio has decreased from 25 to 21, below its historical median of 25, indicating a more attractive entry point for investors, especially given its steady sales growth and consistent dividend payments.
- Dividend Growth History: Procter & Gamble has paid dividends since 1890 and recently announced a 3% increase in its quarterly dividend to $1.0885 per share, marking 70 consecutive years of dividend increases, reflecting the company's confidence in its future prospects.
See More
Schwab U.S. Dividend Equity ETF Investment Analysis
- Quality Dividend Stock Portfolio: The Schwab U.S. Dividend Equity ETF (SCHD) holds around 100 carefully selected stocks, ensuring strong fundamentals and avoiding high-risk dividend stocks, thereby enhancing investment safety.
- Low-Risk Investment Characteristics: With only 11% of its holdings in tech stocks and stable sectors like consumer staples, healthcare, and energy accounting for 16% to 20%, this ETF demonstrates low-risk investment traits, making it suitable for investors seeking stable returns.
- Fee and Yield Advantages: The Schwab fund boasts an expense ratio of just 0.06%, while its dividend yield is approximately 3.3%, which is three times the S&P 500's yield of 1.1%, making it highly attractive.
- Outstanding Market Performance: The ETF has risen about 15% since the beginning of the year, performing excellently amid geopolitical and economic uncertainties, positioning itself as an ideal choice for investors seeking safe investments.
See More
Consumer Staples Giants Leverage AI for Competitive Edge
- Walmart's Market Advantage: With over 280 million shoppers weekly, Walmart leverages its strong bargaining power and private label to negotiate better prices with suppliers, while using its AI shopping assistant, Sparky, to enhance sales and solidify its market position.
- Costco's Brand Loyalty: Costco passes savings from bulk purchases to customers, maintaining pricing power with its Kirkland Signature brand and achieving a membership renewal rate above 92%, ensuring stable growth in a competitive retail landscape.
- Procter & Gamble's Product Diversity: P&G offers essential products from toothpaste to laundry detergent, boasting a gross margin of 50.88% and a dividend yield of 2.97%, maintaining strong brand loyalty and market share despite price increase pressures.
- AI in Product Development: P&G is utilizing AI to enhance product development efficiency and employee productivity, optimizing internal processes and strengthening its adaptability and innovation capabilities in a rapidly changing market.
See More
Investors Should Focus on Consumer Goods Stocks
- Consumer Goods Advantage: In the context of economic downturns and inflation, investors are reminded to increase their allocation to consumer goods stocks, particularly companies like Costco, Procter & Gamble, and PepsiCo, which are seen as resilient against market shocks.
- Costco Membership Renewal Rates: Costco reported a global membership renewal rate of 89.7% in Q2 2026, with U.S. and Canada rates reaching 92.1%, indicating strong consumer loyalty even in tough times, contributing to April sales of $23.9 billion, a 13% year-over-year increase.
- Procter & Gamble's Strong Performance: Procter & Gamble's first-quarter revenue of $22.3 billion exceeded expectations of $22.1 billion, with adjusted EPS of $1.99 surpassing the $1.90 forecast, demonstrating its ability to maintain stable market demand amid economic fluctuations.
- PepsiCo's Dividend Appeal: PepsiCo's first-quarter revenue of $19.4 billion beat analyst forecasts, and its dividend yield of 3.7% provides a strong return in the consumer goods sector, enhancing investor confidence in its stock stability.
See More
The Importance of Portfolio Diversification
- Portfolio Risk Management: Many investors in 2026 realized that owning too many tech stocks exposes their portfolios to risks during economic downturns, lacking sufficient diversification to absorb financial shocks, which negatively impacts overall investment performance.
- Consumer Goods Stock Advantage: Owning consumer goods stocks such as Costco, Procter & Gamble, and PepsiCo can enhance portfolio resilience, as these companies demonstrate strong performance during economic recessions and inflation, providing stable returns for investors.
- Costco's Strong Performance: In its fiscal Q2 2026 report, Costco reported a global membership renewal rate of 89.7%, with U.S. and Canada rates at 92.1%, while April net sales reached $23.9 billion, a 13% increase year-over-year, showcasing its strong appeal even in tough economic times.
- Stable Earnings from Procter & Gamble and PepsiCo: Procter & Gamble's first-quarter revenue of $22.3 billion exceeded expectations, with adjusted EPS of $1.99, while PepsiCo's revenue of $19.4 billion also surpassed forecasts, highlighting both companies' stability and ongoing dividend growth amid economic fluctuations.
See More
Investors Need to Balance Tech Stocks with Consumer Goods
- Consumer Resilience: Amid economic downturns and inflation, companies like Costco, Procter & Gamble, and PepsiCo are viewed as resilient investments that can provide stable returns, enhancing portfolio resilience against market shocks.
- Costco Membership Renewal Rates: In its fiscal Q2 2026 report, Costco reported a global membership renewal rate of 89.7%, with U.S. and Canada rates at 92.1%, indicating strong brand loyalty and potential for further sales growth.
- Strong P&G Earnings: Procter & Gamble's first-quarter revenue of $22.3 billion exceeded expectations of $22.1 billion, with adjusted EPS of $1.99, showcasing stability amid economic uncertainty, while its 69 consecutive years of dividend increases bolster investor confidence.
- PepsiCo's Market Performance: PepsiCo reported Q1 2026 revenue of $19.4 billion, surpassing analyst forecasts, and its 3.7% dividend yield, along with its status as a
See More
Procter & Gamble: Investment Opportunity Amid Stock Price Decline
- Stable Sales Growth: Despite facing economic pressures like high inflation, Procter & Gamble reported a 3% increase in adjusted sales for the quarter ending March 31, with volume contributing 2 percentage points, demonstrating resilience in the essential consumer goods market.
- Dividend Appeal: With an 8.2% drop in share price over the past year, Procter & Gamble offers a 3% dividend yield, nearly triple the S&P 500's 1.1%, allowing shareholders to enjoy stable cash flow while waiting for stock recovery.
- Improved Valuation: The company's price-to-earnings (P/E) ratio has decreased from 25 to 21, below its historical median of 25, indicating a more attractive entry point for investors, especially given its steady sales growth and consistent dividend payments.
- Dividend Growth History: Procter & Gamble has paid dividends since 1890 and recently announced a 3% increase in its quarterly dividend to $1.0885 per share, marking 70 consecutive years of dividend increases, reflecting the company's confidence in its future prospects.
See More
Schwab U.S. Dividend Equity ETF Investment Analysis
- Quality Dividend Stock Portfolio: The Schwab U.S. Dividend Equity ETF (SCHD) holds around 100 carefully selected stocks, ensuring strong fundamentals and avoiding high-risk dividend stocks, thereby enhancing investment safety.
- Low-Risk Investment Characteristics: With only 11% of its holdings in tech stocks and stable sectors like consumer staples, healthcare, and energy accounting for 16% to 20%, this ETF demonstrates low-risk investment traits, making it suitable for investors seeking stable returns.
- Fee and Yield Advantages: The Schwab fund boasts an expense ratio of just 0.06%, while its dividend yield is approximately 3.3%, which is three times the S&P 500's yield of 1.1%, making it highly attractive.
- Outstanding Market Performance: The ETF has risen about 15% since the beginning of the year, performing excellently amid geopolitical and economic uncertainties, positioning itself as an ideal choice for investors seeking safe investments.
See More
Consumer Staples Giants Leverage AI for Competitive Edge
- Walmart's Market Advantage: With over 280 million shoppers weekly, Walmart leverages its strong bargaining power and private label to negotiate better prices with suppliers, while using its AI shopping assistant, Sparky, to enhance sales and solidify its market position.
- Costco's Brand Loyalty: Costco passes savings from bulk purchases to customers, maintaining pricing power with its Kirkland Signature brand and achieving a membership renewal rate above 92%, ensuring stable growth in a competitive retail landscape.
- Procter & Gamble's Product Diversity: P&G offers essential products from toothpaste to laundry detergent, boasting a gross margin of 50.88% and a dividend yield of 2.97%, maintaining strong brand loyalty and market share despite price increase pressures.
- AI in Product Development: P&G is utilizing AI to enhance product development efficiency and employee productivity, optimizing internal processes and strengthening its adaptability and innovation capabilities in a rapidly changing market.
See More
Investors Should Focus on Consumer Goods Stocks
- Consumer Goods Advantage: In the context of economic downturns and inflation, investors are reminded to increase their allocation to consumer goods stocks, particularly companies like Costco, Procter & Gamble, and PepsiCo, which are seen as resilient against market shocks.
- Costco Membership Renewal Rates: Costco reported a global membership renewal rate of 89.7% in Q2 2026, with U.S. and Canada rates reaching 92.1%, indicating strong consumer loyalty even in tough times, contributing to April sales of $23.9 billion, a 13% year-over-year increase.
- Procter & Gamble's Strong Performance: Procter & Gamble's first-quarter revenue of $22.3 billion exceeded expectations of $22.1 billion, with adjusted EPS of $1.99 surpassing the $1.90 forecast, demonstrating its ability to maintain stable market demand amid economic fluctuations.
- PepsiCo's Dividend Appeal: PepsiCo's first-quarter revenue of $19.4 billion beat analyst forecasts, and its dividend yield of 3.7% provides a strong return in the consumer goods sector, enhancing investor confidence in its stock stability.
See More
The Importance of Portfolio Diversification
- Portfolio Risk Management: Many investors in 2026 realized that owning too many tech stocks exposes their portfolios to risks during economic downturns, lacking sufficient diversification to absorb financial shocks, which negatively impacts overall investment performance.
- Consumer Goods Stock Advantage: Owning consumer goods stocks such as Costco, Procter & Gamble, and PepsiCo can enhance portfolio resilience, as these companies demonstrate strong performance during economic recessions and inflation, providing stable returns for investors.
- Costco's Strong Performance: In its fiscal Q2 2026 report, Costco reported a global membership renewal rate of 89.7%, with U.S. and Canada rates at 92.1%, while April net sales reached $23.9 billion, a 13% increase year-over-year, showcasing its strong appeal even in tough economic times.
- Stable Earnings from Procter & Gamble and PepsiCo: Procter & Gamble's first-quarter revenue of $22.3 billion exceeded expectations, with adjusted EPS of $1.99, while PepsiCo's revenue of $19.4 billion also surpassed forecasts, highlighting both companies' stability and ongoing dividend growth amid economic fluctuations.
See More
Investors Need to Balance Tech Stocks with Consumer Goods
- Consumer Resilience: Amid economic downturns and inflation, companies like Costco, Procter & Gamble, and PepsiCo are viewed as resilient investments that can provide stable returns, enhancing portfolio resilience against market shocks.
- Costco Membership Renewal Rates: In its fiscal Q2 2026 report, Costco reported a global membership renewal rate of 89.7%, with U.S. and Canada rates at 92.1%, indicating strong brand loyalty and potential for further sales growth.
- Strong P&G Earnings: Procter & Gamble's first-quarter revenue of $22.3 billion exceeded expectations of $22.1 billion, with adjusted EPS of $1.99, showcasing stability amid economic uncertainty, while its 69 consecutive years of dividend increases bolster investor confidence.
- PepsiCo's Market Performance: PepsiCo reported Q1 2026 revenue of $19.4 billion, surpassing analyst forecasts, and its 3.7% dividend yield, along with its status as a
See More
