P&G’s inclusion in S&P 500 and sector indices
The Procter & Gamble Company, or P&G (PG), ranks first among 39 stocks in the Consumer Staples Select Sector ETF (XLP), with a 12.3%[1. As of June 27, 2015] weight of the total ETF. Peers Colgate-Palmolive (CL) and Estee lauder (EL) together make up 4.6% of XLP.
As one of the largest stocks in the S&P 500 Index, P&G also makes up 1.2% of the portfolio of the iShares Core S&P 500 ETF (IVV), 1.2% of the SPDR S&P 500 ETF Trust (SPY), 1.1% of the Vanguard S&P 500 ETF (VOO), and 1.9% of the iShares S&P 100 ETF (OEF). These funds provide exposure to ten sectors:
- information technology
- consumer discretionary
- consumer staples
- telecommunication services
P&G is a part of the consumer staples sector (XLP).
The SPDR S&P Dividend ETF (SDY) also provides exposure to P&G. This ETF holds stocks that are dividend aristocrats. That means P&G has increased its dividend for 25 straight years. P&G makes up 1.4% of the total fund, and peers Kimberly-Clark (KMB) and Clorox (CLX) together make up 2.6% of SDY.
P&G also has exposure in the iShares Core High Dividend ETF (HDV), with a 5.1% weight. This fund provides exposure to 78 stocks including P&G.
P&G and other Dow stock price movements can significantly influence the Dow Jones Industrial Average, as the index tracks just 30 stocks. Significant movements in individual stocks can and do influence index returns.
P&G currently makes up 2.8% of the SPDR Dow Jones Industrial Average ETF Trust (DIA). Some of the most popular companies in this ETF are Apple (AAPL), Walt Disney (DIS), Home Depot (HD), Walmart (WMT), and Microsoft (MSFT).
P&G’s stock price recently spiked on rumors of its Beauty brands divestment. The price rose by 3.5%, from $78.12 on June 15 to $80.82 on June 18. For more on this subject, read Coty Wins 3 Auctions for P&G Beauty Brands: A Win-Win Deal?
It becomes difficult at times to buy individual stocks, which is why investing in ETFs is advantageous. Diversification reduces risk.