Katie Brockman, The Motley Fool
Sun, July 19, 2026 astatine 4:45 PM CDT 4 min read
Targeting the user staples assemblage often appeals to investors seeking a antiaircraft posture, arsenic these companies supply indispensable goods radical bargain careless of the economical climate.
This examination examines 2 fashionable options — the State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP) and the Fidelity MSCI Consumer Staples Index ETF (NYSEMKT:FSTA) — that connection somewhat antithetic paths to stable, income-generating equity vulnerability wrong the aforesaid marketplace sector.
Snapshot (cost & size)
Beta measures terms volatility comparative to the S&P 500; beta is calculated from monthly returns implicit the disposable money past (up to 5 years). The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.
Both ETFs are highly cost-efficient choices for antiaircraft investors, sharing an identical 0.08% disbursal ratio. This means the determination whitethorn hinge connected output and liquidity. Currently, XLP provides a marginally much robust income watercourse with a higher dividend output than FSTA.
Performance & hazard examination
What's wrong
XLP targets the user staples components of the S&P 500, resulting successful a concentrated portfolio of 34 holdings. This provides vulnerability to established, large-cap companies, and its apical holdings see Walmart (NASDAQ:WMT), Costco Wholesale (NASDAQ:COST), and Procter & Gamble (NYSE:PG). Launched successful 1998, XLP has paid $2.20 per stock successful dividends implicit the trailing 12 months.
FSTA tracks a broader index, offering vulnerability to 98 holdings. Its largest positions lucifer those of XLP, though each carries a somewhat larger weighting wrong the portfolio. This money was launched successful 2013, and it has paid $1.16 per stock successful dividends implicit the trailing 12 months.
For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.
What this means for investors
XLP and FSTA stock galore similarities. They some connection vulnerability to the user staples sector, and with akin full returns and max drawdown, investors tin expect comparable show and hazard profiles betwixt the two.
One cardinal differentiator is diversification. FSTA holds astir 3 times arsenic galore stocks arsenic XLP, offering entree to a wider swath of the user staples market. However, it besides puts much value into its apical holdings.

3 weeks ago
6









.png)
English (CA) ·
English (US) ·
Spanish (MX) ·