After greatly underperforming the S&P 500 Index in 2023 and 2024, the consumer staples sector is punching back this year. As of the May 2 close, the S&P 500 Index had provided a total return of approximately -3% in 2025. Conversely, the Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) has a total return of around 4%. At this point, consumer staples are the second-best performing sector of the year, only behind utilities.
Consumer staples stocks often do well in tough times. This is partly because these companies usually offer high dividend yields.
