Energy-oriented exchange-traded funds (ETFs) have been among the top performers in 2022 as a result of rising commodity prices. But heading into 2023, that may not necessarily be the case as the price of oil has been falling in recent months.
A safer approach may be to invest in consumer staples, in businesses that sell essential products that are relatively resilient to inflation and that should remain in strong demand regardless of what takes place in the economy this year. One fund to consider is the Consumer Staples Select Sector SPDR Fund (NYSE Arca: XLP), which pays a yield of 2.4% — better than the S&P 500 average of around 1.8%. Plus, it holds many top consumer goods stocks, including Procter & Gamble (NYSE:PG), Coca-Cola (NYSE:KO), and PepsiCo (NASDAQ:PEP). With 33 holdings, it isn’t overly diversified but…
