Five Staples ETFs Your Broker Forgot To Mention

The surge in correlations has been well-documented recently. Just last week, various media outlets reported sector correlations had risen to highs not seen since the days around the time Lehman Brothers collapsed. That was later followed by the anecdote that correlations were resting at levels not seen since 1987. Translation: Finding shelter from the market's recent storm is a trying task because almost every sector and asset class is moving in lockstep with each other. Even consumer staples stocks and ETFs, usually a favorite hiding place for investors during volatile market environments, have fallen prey to the correlation conundrum. Still, investors hungry to be long a conservative sector could find some profitable opportunities in the staples space beyond the usual suspects such as the Consumer Staples Select Sector SPDR

. Here are five consumer staples ETFs your broker probably forgot to mention. PowerShares Dynamic Food & Beverage Portfolio

: The PowerShares Dynamic Food & Beverage ETF isn't really ignored. It just doesn't get the press that XLP gets. That said, PBJ is a sound niche alternative for investors looking to focus their staples attention more narrowly on food and drink makers. Top PBJ holdings include General Mills

and Hershey

. PowerShares Dynamic Consumer Staples Portfolio

: PSL is a more direct rival to XLP, but there are some noteworthy differences. PSL's expense ratio is more than triple XLP's, but the PowerShares offering spreads stock allocations around more evenly. In addition, PSL is NOT a quasi Procter & Gamble

proxy. PSL also has a little more growth stock exposure with allocations to the likes of Diamond Foods

and Casey's General Stores

. PowerShares S&P SmallCap Consumer Staples Portfolio

: For those looking for a more adventurous way to play the staples space, the PowerShares S&P Consumer Staples Portfolio is the ETF to consider. Not really a dividend play, but this is a growth play. Diamond and Casey's account for 16% of this ETF's weight. This fund will be a preferred option once fund managers re-embrace small caps. EGShares Consumer Goods GEMS ETF

: EGShares focuses solely on emerging markets ETFs and the newly minted GGEM is the firm's answer for staples exposure. If PSCC looks like an adventurous play, than GGEM is an adrenaline rush in this market environment. There's nothing wrong with some international exposure in the staples group, but buyer beware: The EGShares Consumer Goods GEMS ETF allocates a combined 38% of its weight to India and Brazil. FocusShares Morningstar Consumer Defensive ETF

: The FocusShares Morningstar Consumer Defensive ETF really flies under the radar, but that's not a surprise as the ETF is less than nine months old. In terms of top-10 holdings, this fund is not much different than XLP or PSL.