In November, the Consumer Staples Select Sector SPDR ETF (XLP) was recommended for passive income due to quality value-stock holdings. Surprisingly, it has already risen 13.2% in 2026 compared to the S&P 500’s 1.3% gain. The consumer staples sector, once under pressure, is now one of the best-performing sectors this year.

Consumer staples companies like Walmart, Costco, P&G, and Coca-Cola offer stable dividends and have been resilient despite economic challenges. The sector has seen a turnaround in 2026, outperforming tech and other growth sectors. While top companies in the sector may not be driving the surge, sectorwide rebound is largely driven by market dynamics.

Investors are shifting from growth-focused stocks to value stocks, driving the consumer staples sector’s growth. Despite slow earnings growth in top companies, the sector remains popular due to broader market trends. The Consumer Staples Select Sector SPDR ETF provides solid value and reliable passive income for risk-averse investors.

Considerations for buying stock in the Consumer Staples Select Sector SPDR ETF include shifting market sentiments favoring value stocks, the fund’s solid yield of 2.6%, and its low expense ratio of 0.08%. The fund is a good option for investors seeking stable passive income from industry leaders. Be aware of sector rotations and market dynamics when making long-term investment decisions.

Read more at Nasdaq: I Predicted This ETF Was a Buy for Passive Income, and It’s Already Up 13% in 2026. Is There More Room to Run?