1 Sector ETF to Avoid Like the Plague in November

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Todd Shriber, The Motley FoolSat, November 22, 2025 at 12:15 PM GMT+1 4 min readIn theory, this sector ETF should be providing shelter from the storm, but it's not.Making matters worse, it's betraying usually favorable seasonality.Some of its biggest holdings aren't cheap. They're actually pricier than some tech stocks.10 stocks we like better than Select Sector SPDR Trust - The Consumer Staples Select Sector SPDR Fund ›An investor looking at some recent goings on in financial markets, namely the massive paring of market value in the cryptocurrency realm and increased chatter about an artificial intelligence (AI) bubble, might conclude that now is a good time to get defensive.There's some merit in that view, but consumer staples -- typically one of the most defensive sectors -- is betraying investors' trust. That alone is ample reason for market participants to approach staples exchange-traded funds (ETFs) with a healthy dose of skepticism and not attempt to catch what may be falling knives before November concludes.In fact, the Consumer Staples Select Sector SPDR Fund (NYSEMKT: XLP) stands out as a sector ETF to avoid this month, and there are multiple reasons why that's the case.This sector ETF should be avoided in November and perhaps beyond. Image source: Getty Images.Home to $14.94 billion in assets under management, this consumer staples ETF is one of the oldest and largest funds in the category, but those traits haven't insulated it from recent weakness. For the month ending Nov. 18, the fund retreated 3.6%, bringing its year-to-date loss to 2.7%. It's off 6.4% over the past six months. All those data points justify why there hasn't been a real sector rotation out of growth fare into defensive groups like staples. Those are good reasons to avoid this ETF this month.But wait, there's more -- and it's comparably gloomy.Staples are slumping during a calendar stretch that's often kind to the sector. Over the past 20 years, November has, on average, been the second-best month of the year in which to own consumer-packaged goods stocks, with the sector posting a 70% win frequency in the 11th month of the year.With November drawing to a close, this staples ETF needs a miracle to get anywhere close to living up to its previously positive seasonal trends. Said another way, this sector fund has disappointed investors at a time when it should be doing the exact opposite.It's not uncommon for consumer staples stocks to trade at multiples above those of the broader market. That's the cost of admission investors pay to access above-average dividend yields and favorable volatility traits, but these days, some big-name staples are looking quite frothy on valuation.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,602.99 +64.23 (+0.98%)Dow 3046,245.41 +493.15 (+1.08%)Nasdaq22,273.08 +195.03 (+0.88%)Russell 20002,369.59 +64.48 (+2.80%)VIX23.43 -2.99 (-11.32%)Gold4,079.50 +19.50 (+0.48%)PortfolioSign in to access your portfolioSign inTop gainersBLLN BillionToOne, Inc. 110.00 +14.32 (+14.97%)ADPT Adaptive Biotechnologies Corporation 18.61 +2.29 (+14.03%)KYIV Kyivstar Group Ltd. 12.93 +1.41 (+12.24%)CAVA CAVA Group, Inc. 48.92 +5.33 (+12.23%)HTFL Heartflow, Inc. 30.85 +3.18 (+11.49%)Top losersESTC Elastic N.V. 70.04 -12.04 (-14.67%)VEEV Veeva Systems Inc. 244.06 -26.44 (-9.77%)POST Post Holdings, Inc. 99.42 -7.66 (-7.15%)FRMI Fermi Inc. 14.34 -1.07 (-6.94%)MENS Jyong Biotech Ltd. 30.74 -2.06 (-6.28%)Most activeNVDA NVIDIA Corporation 178.88 -1.76 (-0.97%)OPEN Opendoor Technologies Inc. 6.75 +0.59 (+9.58%)ONDS Ondas Holdings Inc. 6.74 +0.47 (+7.42%)PLUG Plug Power Inc. 1.9800 +0.0900 (+4.76%)TSLA Tesla, Inc. 391.09 -3.96 (-1.00%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 86,751.46 +3,147.29 (+3.76%)ETH-USD Ethereum USD 2,835.50 +120.01 (+4.42%)XRP-USD XRP USD 2.05 +0.14 (+7.32%)SOL-USD Solana USD 131.04 +5.31 (+4.22%)BTC-EUR Bitcoin EUR 75,282.23 +2,731.19 (+3.76%)Top economic events