Investors, those buying ASX shares or exchange-traded funds (ETFs), would be forgiven for being a little nervous right now. The world of investing is never filled with certainty. But 2026 seems to be delivering more than your average year so far.
We have a war that has been dragging on for months now, the ongoing closure of one of the world's most vital energy supply chains, rising inflation, and stagnating economic growth. Not exactly a recipe for confidence.
Now, investors have always faced uncertainty – no one knows what the future holds, after all. And the 21st century has already thrown up its fair share of curveballs. But those facts won't exactly provide comfort to every investor. That's why I thought it was a good opportunity to discuss an ASX ETF that I think is perfect for nervous investors in 2026.
That ASX ETF is none other than the iShares Global Consumer Staples ETF (ASX: IXI).
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The perfect ASX ETF for nervous investors?
IXI is a fund that only holds the world's leading manufacturers, suppliers, and retailers of consumer staples goods. Consumer staples are products we tend to need to buy, regardless of their cost. They include food, drinks, and household essentials. They also include alcohol and tobacco.
Demand for these goods tends to be highly inelastic, to borrow an economic term. Put another way, demand for these goods is typically immune to the health of the economy. That makes them highly reliable investments, particularly for nervous investors worried about inflation or a recession.
The majority of IXI's holdings (about 60%) are US stocks. The United Kingdom, Japan, Switzerland, France, and Canada, amongst others, make up the rest.
Most of this ASX ETF's largest holdings are well-known household names. They include Walmart, Costco, Procter & Gamble, Nestle, Coca-Cola, Phillip Morris International, PepsiCo, Altria, and Unilever. There's also Cadbury-owner Mondelez International, Monster Beverage Corp, Colgate-Palmolive, as well as our own Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).
These are all mature, established, and financially sound companies that are leaders in the consumer staples space.
Thanks to this ASX ETF's diversification, wide exposure, and inherent defensiveness, I think this investment is perfect for a nervous investor in 2026.
The iShares Global Consumer Staples ETF has returned an average of 7.72% per annum since its inception in 2006 (that's as of 30 April). It charges a management fee of 0.49% per annum.
