What is a consumer staples index and how is it a useful investment/trade?

Question

What is a consumer staples index and how is it a useful investment/trade?

Answer 1

A consumer staples index fund takes a sample of different stocks within the consumer staples sector of the market (i.e. companies that make products that the everyday person uses - Pepsi and Johnson&Johnson are examples).

It's a useful investment because even when the market is down, consumers are still purchasing these items giving the companies a steady income.  Regardless of market conditions, people still drink Pepsi.

However, this is not a useful investment because as an index, it performs exactly as the market does.  There is no hedging of risks.