What are broad consumer staples ETFs?
Consumer staples are the everyday products households keep purchasing in good times and bad: food, drinks, cleaning and personal-care items, and tobacco. The industry includes the companies that make them and the big retailers that stock them. The 11 ETFs in this guide share many holdings. Monster Beverage appears in 9 of the 11 funds, Coca-Cola and Philip Morris International in 8, Altria in 7, and Procter & Gamble, Costco, PepsiCo, Mondelez and Colgate-Palmolive in 6 each. Walmart is in only 5, yet it is the largest holding in XLP, VDC, FSTA and KXI.
All track an index; none is actively managed. XLP holds 34 stocks, FSTA 93 and VDC 103, yet each keeps about 61% to 62% of its money in its 10 largest positions. IYK's biggest holdings are Coca-Cola, Procter & Gamble and Philip Morris rather than Walmart and Costco, and KXI adds companies outside the US, such as Nestlé. Smaller funds take other routes: RSPS gives each S&P 500 staples stock an equal weight, PSL favors stocks with strong price momentum, FXG tracks the StrataQuant Consumer Staples Index, and PSCC owns small companies. UGE and SZK are leveraged ProShares funds aiming for 2x and -2x (twice the opposite) the daily move of the S&P Consumer Staples Select Sector Index.
Costs vary widely. The median expense ratio, the yearly fee taken from fund assets, is 0.38%. XLP charges the least at 0.08%, with FSTA at 0.084% and VDC at 0.09%. UGE and SZK charge the most, 0.95%, and FXG, at 0.63%, is the priciest of the ordinary funds.
Money is concentrated, too. The five largest funds, XLP, VDC, FSTA, IYK and KXI, hold 97.8% of the roughly $27.4 billion invested across the group, and XLP alone manages about $13.6 billion.
Broad consumer staples ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 11 biggest broad consumer staples ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Monster Beverage Corp | 9 of 11 | 2.93% |
| Philip Morris International Inc | 8 of 11 | 4.48% |
| Coca-Cola Co | 8 of 11 | 4.41% |
| Altria Group Inc | 7 of 11 | 3.71% |
| Procter & Gamble Co | 6 of 11 | 7.43% |
| Costco Wholesale Corp | 6 of 11 | 7.17% |
| PepsiCo Inc | 6 of 11 | 4.26% |
| Mondelez International Inc | 6 of 11 | 2.65% |
| Colgate-Palmolive Co | 6 of 11 | 2.33% |
| Walmart Inc | 5 of 11 | 10.8% |
| Target Corp | 5 of 11 | 2.51% |
| Sysco Corp | 5 of 11 | 1.85% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest broad consumer staples ETFs, side by side
Swipe the table to see all 5 funds.
| XLP | VDC | FSTA | IYK | KXI | |
|---|---|---|---|---|---|
| Net assets | $13.65B | $9.25B | $1.42B | $1.42B | $1.01B |
| Expense ratio | 0.08% | 0.09% | 0.08% | 0.37% | 0.38% |
| Holdings | 34 | 103 | 93 | 53 | 104 |
| In the 10 largest | 62.41% | 61.48% | 61.63% | 66.24% | 49.42% |
| Biggest holding | Walmart Inc (10.8%) | Walmart Inc (12.82%) | Walmart Inc (13.47%) | The Coca-cola Company (12.99%) | Walmart Inc. (8.58%) |
| Yield | 2.45% | 2.06% | 2.14% | 2.49% | 2.28% |
| 1-year return | +20.1% | +12.2% | +12.3% | +13.3% | +10.3% |
| 3 years, a year | +12.8% | +13.0% | +12.9% | +11.2% | +11.5% |
| 5 years, a year | +7.4% | +7.6% | +7.6% | +7.2% | +5.4% |
| Worst drop, past year | -9.7% | -9.4% | -9.4% | -10.7% | -10.7% |
| Launched | 1998 | 2004 | 2013 | 2000 | 2006 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 30, 2026.
Head to head
XLP vs VDC
XLP holds 34 stocks; VDC holds 103, including all 34 of XLP's. Each keeps 61% to 62% of assets in its top 10, led by Walmart (10.8% of XLP, 12.8% of VDC). They share 77.2% of their assets, and fees are nearly identical: 0.08% and 0.09%. As of October 30, 2026, XLP returned 20.1% over one year versus 12.2% for VDC, while VDC edged ahead over five years, 7.6% to 7.4%. Their deepest drops over the past year were close: 9.7% and 9.4%. XLP may suit investors wanting only the biggest names; VDC, those preferring a wider net.
VDC vs FSTA
These two are near twins: 97.5% of their assets overlap. FSTA tracks the MSCI USA IMI Consumer Staples 25/50 Index with 93 holdings; VDC holds 103. Walmart leads both (12.8% of VDC, 13.5% of FSTA), and each keeps about 61.5% in its top 10. FSTA charges 0.084% and VDC 0.09%. As of October 30, 2026, returns were nearly identical: 12.3% versus 12.2% over one year and 7.6% each over five years, with the same 9.4% worst one-year drop. VDC is far larger, with about $9.3 billion to FSTA's $1.4 billion. Both may suit investors wanting broad, low-cost staples exposure.
IYK vs KXI
These iShares funds overlap least of the five largest, sharing 40% of assets. IYK holds 53 US stocks, with 66.2% in its top 10, led by Coca-Cola at 13%. KXI holds 104 stocks worldwide, including Nestlé, with 49.4% in its top 10 and Walmart at 8.6%. Fees are 0.37% and 0.38%. As of October 30, 2026, IYK returned 13.3% over one year and 7.2% over five, versus 10.3% and 5.4% for KXI; both fell as much as 10.7% over the past year. IYK may suit those wanting big US brands; KXI, those wanting holdings beyond the US.
How much do the largest broad consumer staples ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| VDC and FSTA | 97.5% | 91 | |
| XLP and VDC | 77.2% | 34 | |
| XLP and FSTA | 77% | 34 | |
| FSTA and IYK | 59.5% | 46 | |
| VDC and IYK | 59.4% | 45 | |
| XLP and KXI | 59.1% | 34 | |
| VDC and KXI | 59.1% | 34 | |
| FSTA and KXI | 59.1% | 34 | |
| XLP and IYK | 58.3% | 28 | |
| IYK and KXI | 40% | 28 |
From each fund’s full holdings in its latest N-PORT report.
How have broad consumer staples ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing broad consumer staples ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | XLP Consumer Staples Select Sector SPDR Fund | $13.65B | 0.08% | +10.9% | +17.3% | +20.1% | +12.8% |
| 2 | IYK iShares U.S. Consumer Staples ETF | $1.42B | 0.37% | +6.5% | +16.1% | +13.3% | +11.2% |
| 3 | FSTA Fidelity MSCI Consumer Staples Index ETF | $1.42B | 0.08% | +6.6% | +14.1% | +12.3% | +12.9% |
| 4 | PSCC Invesco S&P SmallCap Consumer Staples ETF | $39.3M | 0.29% | +5.1% | +15.1% | +12.3% | +4.0% |
| 5 | VDC Vanguard Consumer Staples ETF | $9.25B† | 0.09% | +6.5% | +13.8% | +12.2% | +13.0% |
| 6 | KXI iShares Global Consumer Staples ETF | $1.01B | 0.38% | +6.1% | +10.6% | +10.3% | +11.5% |
| 7 | RSPS Invesco S&P 500 Equal Weight Consumer Staples ETF | $246.8M | 0.4% | +5.8% | +8.9% | +7.2% | +5.7% |
| 8 | PSL Invesco Dorsey Wright Consumer Staples Momentum E… | $84.7M | 0.6% | +5.1% | +13.3% | +4.5% | +13.8% |
| 9 | FXG First Trust Consumer Staples AlphaDEX Fund | $229.3M | 0.63% | +4.4% | +2.2% | -1.7% | +4.3% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How broad consumer staples ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| XLP | -28.5% | -24.1% | -10.7% |
| VDC | not yet launched | not yet launched | -11.2% |
| FSTA | not yet launched | -24.7% | -11.2% |
| IYK | -42.2% | -33.1% | -7.5% |
| KXI | -36.2% | -24.3% | -16.2% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives broad consumer staples ETFs?
Consumer staples companies offer things people keep purchasing when money is tight, such as groceries, soft drinks, toothpaste and cigarettes, so their revenue tends to be steadier than most. Profits hinge more on costs and pricing: ingredients, packaging, wages and freight, and whether shoppers accept price rises or switch to cheaper store brands. Interest rates matter, too. These companies are prized for steady dividends, so when bond yields rise, some income investors shift toward bonds, which can weigh on share prices. Firms with large overseas revenue feel currency swings, and tobacco and soda makers face health regulation and taxes.
That steadiness has shown up in past market slumps. In the 2008 financial crisis, XLP fell 28.5% while the S&P 500 dropped 55.2%; IYK (42.2%) and KXI (36.2%) fell further than XLP but less than the market. In the 2020 COVID crash, XLP, FSTA and KXI each lost about 24% to 25%, against 33.7% for the S&P 500, though IYK's 33.1% fall was nearly as deep. In the 2022 bear market, IYK slipped 7.5%, XLP 10.7%, VDC and FSTA 11.2% and KXI 16.2%, compared with 24.5% for the S&P 500. Smaller losses were still losses.
Broad consumer staples ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | XLP Consumer Staples Select Sector SPDR Fund | 0.08% | $8 a year | $13.65B |
| 2 | FSTA Fidelity MSCI Consumer Staples Index ETF | 0.08% | $8 a year | $1.42B |
| 3 | VDC Vanguard Consumer Staples ETF | 0.09% | $9 a year | $9.25B |
| 4 | PSCC Invesco S&P SmallCap Consumer Staples ETF | 0.29% | $29 a year | $39.3M |
| 5 | IYK iShares U.S. Consumer Staples ETF | 0.37% | $37 a year | $1.42B |
Ordinary funds with at least $10 million in net assets. The median ordinary broad consumer staples ETF charges 0.37% a year; leveraged and inverse funds usually charge more.
Do broad consumer staples ETFs pay dividends?
9 of the 9 ordinary broad consumer staples ETFs with a page here paid distributions over the last 12 months, with a median yield of 2.14%.
| Highest yields | Yield | Net assets |
|---|---|---|
| RSPS Invesco S&P 500 Equal Weight Consumer Staples… | 2.88% | $246.8M |
| IYK iShares U.S. Consumer Staples ETF | 2.49% | $1.42B |
| XLP Consumer Staples Select Sector SPDR Fund | 2.45% | $13.65B |
| KXI iShares Global Consumer Staples ETF | 2.28% | $1.01B |
| FSTA Fidelity MSCI Consumer Staples Index ETF | 2.14% | $1.42B |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a broad consumer staples ETF
- Annual cost: 0.08% to 0.95%. XLP charges 0.08% a year, FSTA 0.084% and VDC 0.09%. IYK and KXI cost 0.37% and 0.38%, the rules-based FXG and PSL 0.63% and 0.60%, and the leveraged UGE and SZK 0.95%. Fees come out of returns every year.
- How top-heavy each fund is. XLP holds 34 stocks; VDC, FSTA and KXI hold 93 to 104. Yet XLP, VDC, FSTA and IYK all keep 61% to 66% in their top 10, so a handful of giants drive results. KXI is lower at 49.4%.
- How holdings are picked and weighted. Walmart makes up 10.8% to 13.5% of XLP, VDC and FSTA. RSPS weights each S&P 500 staples stock equally, so its top 10 holdings total 33%. PSL screens for momentum, FXG follows the StrataQuant index and PSCC owns small companies.
- US-only or global. KXI tracks global staples stocks, adding names such as Nestlé, while IYK and FSTA track US-only indexes. Going global spreads country risk but adds currency swings. KXI's five-year return to October 30, 2026, was 5.4%, versus 7.4% for XLP.
- Fund size and trading costs. XLP (about $13.6 billion) and VDC ($9.3 billion) dwarf PSCC ($39 million) and PSL ($85 million). Small funds can have wider trading spreads, the gap between purchase and sale prices, and a higher chance of closing.
- Leveraged and inverse funds are trading tools. UGE aims for 2x, and SZK for -2x, the daily move of the S&P Consumer Staples Select Sector Index. Daily resets make longer results drift: over five years to October 30, 2026, UGE lost 4.1% while XLP gained 7.4%.
What are the risks of broad consumer staples ETFs?
- A few giants drive the big funds. Walmart is 10.8% to 13.5% of XLP, VDC and FSTA, with Costco at 9% to 11.4%. IYK keeps 66.2% in its top 10, led by Coca-Cola at 13%. A stumble at one company can move the whole fund.
- Tobacco is hard to avoid. Philip Morris International is held by 8 of the 11 funds and Altria by 7. Philip Morris alone is 11.4% of IYK. Tobacco makers face health rules, taxes and lawsuits, and some investors prefer to avoid them.
- Steadier, but still real swings. As of October 30, 2026, one-year volatility, a measure of how much returns bounce around, ran from 14.2% to 17% for the ordinary funds. Their deepest drops over the year ranged from 9.4% (VDC, FSTA) to 16% (FXG).
- Strategy funds can trail for long stretches. Over the year to October 30, 2026, FXG returned -1.7%, PSL 4.5% and RSPS 7.2%, versus 20.1% for XLP. Over five years, FXG returned 3.3% to XLP's 7.4%, though PSL led over three years.
- Leveraged and inverse funds compound daily. UGE (2x) and SZK (-2x) reset every day, so losses can build when prices zigzag. As of October 30, 2026, their one-year volatility was 30.6% and 30.3%, versus 15.4% for XLP, and SZK fell as much as 30.8%.
Leveraged and inverse broad consumer staples ETFs (2x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all broad consumer staples ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | XLP Consumer Staples Select Sector SPDR Fund | $13.65B | 0.08% | 2.45% | +17.3% | +20.1% | +7.4% |
| 2 | VDC Vanguard Consumer Staples ETF | $9.25B† | 0.09% | 2.06% | +13.8% | +12.2% | +7.6% |
| 3 | FSTA Fidelity MSCI Consumer Staples Index ETF | $1.42B | 0.08% | 2.14% | +14.1% | +12.3% | +7.6% |
| 4 | IYK iShares U.S. Consumer Staples ETF | $1.42B | 0.37% | 2.49% | +16.1% | +13.3% | +7.2% |
| 5 | KXI iShares Global Consumer Staples ETF | $1.01B | 0.38% | 2.28% | +10.6% | +10.3% | +5.4% |
| 6 | RSPS Invesco S&P 500 Equal Weight Consumer Staples ETF | $246.8M | 0.4% | 2.88% | +8.9% | +7.2% | — |
| 7 | FXG First Trust Consumer Staples AlphaDEX Fund | $229.3M | 0.63% | 2.08% | +2.2% | -1.7% | +3.3% |
| 8 | PSL Invesco Dorsey Wright Consumer Staples Momentum E… | $84.7M | 0.6% | 0.71% | +13.3% | +4.5% | +5.9% |
| 9 | PSCC Invesco S&P SmallCap Consumer Staples ETF | $39.3M | 0.29% | 1.9% | +15.1% | +12.3% | +2.7% |
| 10 | UGE ProShares Ultra Consumer Staples Leveraged | $10.0M | 0.95% | 2.04% | +22.2% | +17.7% | -4.1% |
Questions investors ask about broad consumer staples ETFs
What is the largest consumer staples ETF?
The Consumer Staples Select Sector SPDR Fund (XLP) is the largest, with about $13.6 billion in assets. Launched in December 1998, it tracks the Consumer Staples Select Sector Index and holds 34 stocks, led by Walmart, Costco and Procter & Gamble. Vanguard Consumer Staples ETF (VDC) is next at about $9.3 billion. Together with FSTA, IYK and KXI, these five hold 97.8% of the money in the group.
What is the cheapest consumer staples ETF?
XLP has the lowest expense ratio, 0.08% a year. Fidelity MSCI Consumer Staples Index ETF (FSTA) is almost the same at 0.084%, and Vanguard's VDC charges 0.09%. After those, costs jump: PSCC charges 0.29% and IYK 0.37%, and the group's median is 0.38%. The leveraged UGE and SZK cost the most, at 0.95%.
XLP vs VDC: what's the difference?
The main difference is breadth. XLP holds 34 stocks, while VDC holds 103, including all of XLP's. They share 77.2% of their assets, both are led by Walmart and Costco, and fees are nearly identical at 0.08% and 0.09%. As of October 30, 2026, XLP returned 20.1% over one year and VDC 12.2%, but over five years VDC returned 7.6% and XLP 7.4%. XLP's yield was also higher on that date, 2.45% versus 2.06%.
Do consumer staples ETFs pay dividends?
Yes. All nine funds that aren't leveraged or inverse pay dividends, and their median yield was 2.14% as of October 30, 2026. RSPS had the highest yield, 2.88%, followed by IYK at 2.49%, XLP at 2.45%, KXI at 2.28% and FSTA at 2.14%; VDC yielded 2.06%. Yields move with share prices and company payouts, so these figures change over time.
Which consumer staples ETFs hold Walmart and Costco?
Most of the large ones do. Walmart is the biggest holding in XLP (10.8%), VDC (12.8%), FSTA (13.5%) and KXI (8.6%), and Costco is second in each. Across the group, Walmart appears in 5 of the 11 funds and Costco in 6. IYK is the exception among the big funds: its largest holdings are Coca-Cola, Procter & Gamble, Philip Morris International, PepsiCo and CVS Health.
Do consumer staples ETFs hold tobacco stocks?
Most do. Philip Morris International is held by 8 of the 11 funds and Altria by 7. Philip Morris ranks among the five largest holdings in XLP (6.1%), VDC (4.5%), FSTA (4.5%), KXI (4.5%) and especially IYK (11.4%). All five of the largest funds include it, so investors looking for a consumer staples ETF without tobacco would need to check the smaller funds' holdings or look beyond this group.
How many consumer staples ETFs are there?
There are 11 US-listed consumer staples ETFs, with about $27.4 billion in combined assets. Nine are standard index funds from SPDR (State Street), Vanguard, Fidelity, iShares, Invesco and First Trust. Two, UGE and SZK from ProShares, are leveraged or inverse. The five largest, XLP, VDC, FSTA, IYK and KXI, hold 97.8% of the money, so most of the others are small; PSCC, for example, has about $39 million.
What are leveraged and inverse consumer staples ETFs?
UGE and SZK, both from ProShares, aim for 2x and -2x (twice the opposite) the daily move of the S&P Consumer Staples Select Sector Index. They get that exposure through derivatives; SZK's holdings are mostly repurchase agreements, short-term cash-like loans. Because they reset daily, longer-term results can stray far from 2x: over five years to October 30, 2026, UGE lost 4.1% while XLP gained 7.4%, and SZK lost 2.2%. With 0.95% fees, they are built for short-term trading, not long-term holding.
Is there a Vanguard, Fidelity or Schwab consumer staples ETF?
Yes. Vanguard offers one: VDC (Vanguard Consumer Staples ETF). Fidelity offers one: FSTA (Fidelity MSCI Consumer Staples Index ETF). Schwab doesn’t have a consumer staples ETF.
