In the stock market, the simplest ideas are often the most effective. The average annual return of the S&P 500 is around 10% -- which is pretty good for a hands-off approach and certainly far better than alternatives. But income-oriented investors may demand more than the S&P 500's mere 1.5% dividend yield.

There are 11 sectors in the S&P 500. One of the safest is consumer staples. The sector's largest exchange-traded fund (ETF) by net assets -- the Consumer Staples Select Sector SPDR Fund (NYSEMKT: XLP) -- is down on the year and is hovering right around a 52-week low. It features a dividend yield of 2.8%, nearly double the yield of the S&P 500. But unlike a risk-free 10-year Treasury note -- which yields 4.6% but features zero growth -- the ETF provides upside potential by investing in a conservative sector of the economy.

Here's why the consumer staples sector is an opportunity that's hiding in plain sight and worth considering now.

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Source Fool.com