Skip to content
Find an ETF

By sector

Consumer ETFs

A gentle look at the companies that sell us everyday goods and little extras — and what a fund tracking them actually holds.

The things people buy every day

What Consumer ETFs are

A consumer ETF is a fund (a basket of many companies you can buy in one go) that focuses on businesses selling goods and services to shoppers. This corner of the market splits into two quite different halves.

'Consumer staples' are the essentials people buy in good times and bad — food, drinks, soap, household basics. 'Consumer discretionary' covers the nice-to-haves people buy when they feel comfortable — cars, restaurants, travel, fashion, online shopping. A fund may hold one half or blend both, so it helps to check which.

Because a consumer ETF sticks to one slice of the market, it is narrower and usually bumpier than a broad world ETF that spreads across every sector. For that reason many people treat it as a small side holding — a 'satellite' — rather than the core of a portfolio.

At a glance

Risk levelHigher than a broad world fund — it leans on one sector
Typical fee~0.15%–0.55% a year
Holdings~30–120 consumer companies, fund depending
Two flavoursStaples (essentials) or discretionary (extras)
Region tiltOften US-heavy, with big global brands

Why beginners look here

Everyday, familiar names

The companies are ones you already meet — supermarkets, carmakers, coffee chains — which can make the theme easier to picture.

Two very different halves

Staples tend to be steadier while discretionary swings more with the economy, so what you get depends heavily on which half the fund leans into.

A small side slice

As just one sector among many, it is more concentrated than a whole-market fund, so it is often held as a small satellite alongside a broad fund rather than as a first building block.

What to look for

Staples or discretionary? Check which half the fund emphasises, because the two can behave quite differently in a downturn.
Overlap with what you own A broad world ETF already holds these consumer giants, so a sector fund can double up on the same names.
Ongoing cost Compare the yearly fee, usually shown as the TER (total expense ratio); sector funds can cost a little more than plain broad-index funds.
How concentrated it is See how much sits in the top few holdings — a handful of mega-brands can dominate the whole fund, which adds to the ups and downs.

Popular Consumer ETFs

A few of the largest, pulled live from the screener — an example, not a recommendation.

See all Consumer ETFs in the screener →

Good to know

Is this too risky for a beginner?

It carries more risk than a broad world fund because it leans on one slice of the economy, so its value can swing more sharply. Many beginners keep a broad fund at the core and add a narrow sector like this only as a small extra, if at all.

What's the difference between staples and discretionary?

Staples are essentials people keep buying no matter what, like food and cleaning products. Discretionary is optional spending, like holidays and new cars, which tends to rise and fall more with how confident people feel.

Isn't buying brands I use a safe bet?

Knowing a brand doesn't make its shares low-risk. A familiar product can still have a pricey or volatile stock, so it's worth looking past the logo at what the fund actually holds and what it costs.

Related topics

Finance Hamster provides educational information about ETFs and investing. It is not investment, tax, or legal advice, and not a recommendation to buy or sell any security. Markets carry risk; do your own research or consult a licensed adviser.