At a glance
XLP charges 0.08% a year, below the 0.37% average of the 8 funds most like it (the cheapest of 9). It has $13.65B in assets, the largest of that group; it paid 2.45% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +20.1% with distributions reinvested (S&P 500: +11.5%), the best of those 9 funds; over three years it returned +12.8% a year. At its worst it fell 24.3% in the 2020 crash (S&P 500: 33.7%) and 16.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 18 months after the lows. Its ten largest positions make up 62.4% of the fund, out of 34 in all.
The short version
The Consumer Staples Select Sector SPDR Fund (XLP), from State Street, is an index fund that holds the consumer staples companies in the S&P 500, such as Walmart, Costco, Procter & Gamble and Coca-Cola. Its expense ratio is 0.08%, the lowest of the nine similar funds compared here. It is also concentrated. As of June 30, 2026, its 10 largest holdings made up about 62% of the fund.
Price history
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XLP +20.1% over the year to Oct 30, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| XLP official prospectus, to Dec 31, 2025 | — | +1.56% | — | +5.58% | +7.22% | — |
| XLP price data to Oct 30, 2026 | +17.3% | +20.1% | +12.8% | +7.4% | +8.3% | +6.9% |
- Over the year to Oct 30, 2026, XLP returned +20.1%, 1st of 9 among similar funds.
- Its 5-year annualized return was +7.4% and its 10-year +8.3%.
- In the 2020 COVID crash it fell 24.3% and regained its old high 4.6 months after the low.
- Its worst full calendar year was 2002 (-20.1%); its best was 2019 (+27.4%).
- The deepest fall in its price history was 35.9% (Dec 28, 2000 to Mar 10, 2003), recovered by Oct 26, 2006.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +17.3% | — |
| 2025 | +1.5% | +1.56% |
| 2024 | +12.2% | +12.18% |
| 2023 | -0.8% | -0.87% |
| 2022 | -0.8% | -0.82% |
| 2021 | +17.2% | +17.10% |
| 2020 | +10.2% | +10.13% |
| 2019 | +27.4% | +27.45% |
| 2018 | -8.1% | -8.00% |
| 2017 | +13.0% | +12.92% |
| 2016 | +5.0% | +5.00% |
| 2015 | +6.9% | — |
| 2014 | +15.7% | — |
| 2013 | +26.3% | — |
| 2012 | +10.8% | — |
| 2011 | +14.1% | — |
| 2010 | +13.8% | — |
| 2009 | +14.3% | — |
| 2008 | -15.0% | — |
| 2007 | +12.7% | — |
| 2006 | +14.5% | — |
| 2005 | +2.8% | — |
| 2004 | +7.7% | — |
| 2003 | +11.2% | — |
| 2002 | -20.1% | — |
| 2001 | -9.9% | — |
| 2000 | +25.6% | — |
| 1999 | -14.3% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 28.5% over that stretch · deepest drop along the way 32.4%, back to its old high 12.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 24.1% over that stretch · deepest drop along the way 24.3%, back to its old high 4.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 10.7% over that stretch · deepest drop along the way 16.3%, back to its old high 17.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.5600 | |
| 2025 | $2.1400 | -1.4% |
| 2024 | $2.1700 | +14.2% |
| 2023 | $1.9000 | +3.8% |
| 2022 | $1.8300 | +4.6% |
| 2021 | $1.7500 | +3.6% |
| 2020 | $1.6900 | +4.3% |
| 2019 | $1.6200 | +5.2% |
| 2018 | $1.5400 | +2.7% |
| 2017 | $1.5000 | +14.5% |
| 2016 | $1.3100 | +2.3% |
| 2015 | $1.2800 | +9.4% |
| 2014 | $1.1700 | +14.7% |
| 2013 | $1.0200 | -4.6% |
| 2012 | $1.0690 | +20.8% |
| 2011 | $0.8850 | +16.0% |
| 2010 | $0.7630 | +4.8% |
| 2009 | $0.7280 | +11.3% |
| 2008 | $0.6540 | +9.2% |
| 2007 | $0.5990 | +16.8% |
| 2006 | $0.5130 | +15.8% |
| 2005 | $0.4430 | +24.1% |
| 2004 | $0.3570 | -0.6% |
| 2003 | $0.3590 | -6.5% |
| 2002 | $0.3840 | +20.0% |
| 2001 | $0.3200 | +8.5% |
| 2000 | $0.2950 | +8.9% |
| 1999 | $0.2710 |
What's inside
As of Jun 30, 2026, the fund held 34 securities; the ten largest made up 62.41% of assets.
| Holding | Weight | |
|---|---|---|
| Walmart Inc | 10.80% | |
| Costco Wholesale Corp | 9.03% | |
| Procter & Gamble Co | 7.43% | |
| Coca-Cola Co | 6.85% | |
| Philip Morris International Inc | 6.13% | |
| Colgate-Palmolive Co | 4.70% | |
| Altria Group Inc | 4.53% | |
| Monster Beverage Corp | 4.45% | |
| PepsiCo Inc | 4.32% | |
| Mondelez International Inc | 4.15% | |
| Target Corp | 3.85% | |
| Keurig Dr Pepper Inc | 2.89% | |
| Sysco Corp | 2.59% | |
| Archer-Daniels-Midland Co | 2.39% | |
| Kenvue Inc | 2.38% |
By country
United States 98.69%Switzerland 0.94%By asset type
Stocks 99.63%By sector
Sectors of the companies held, for the 87.5% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $2.03B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.83%, -1.61%, +0.90%.
How it works
XLP tracks the Consumer Staples Select Sector Index. S&P Dow Jones Indices builds and runs the index and is not affiliated with the fund. A stock gets in only if it is in the S&P 500 and is classed as consumer staples under the Global Industry Classification Standard (GICS), a system that sorts companies by industry. That covers grocery and big-box retailers, household products, food, beverages, tobacco and personal care. The index had 37 stocks as of November 30, 2025.
Stocks are weighted by a "modified market capitalization" method. Larger companies get larger weights, but S&P can trim any single stock that grows too big to meet the tax rules for funds like this one. As of June 30, 2026, Walmart made up 10.8% of the fund, Costco 9.0% and Procter & Gamble 7.4%. The fund is legally "non-diversified," so a few stocks can move its price a lot.
The fund uses replication. That means it owns nearly every stock in the index in about the same proportions, with at least 95% of assets in index stocks. The rest can sit in cash or money market funds. It also held a tiny futures position as of June 30, 2026. Turnover, the share of the portfolio traded in a year, was 8%. XLP trades on an exchange, so its market price can differ slightly from the value of its holdings.
What it really costs
- XLP charges 0.08% a year, versus an average of 0.37% for the similar funds below (1st of 9, cheapest first).
- Of that, 0.03% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $8 in the first year and $103 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XLP | $8 | $26 | $45 | $103 |
In a retirement portfolio
XLP holds companies that sell everyday goods people keep buying in downturns, but it is still a stock fund focused on one sector.
XLP can steady the stock side of a portfolio, but it still falls in sell-offs. It dropped 32.4% from September 2008 to March 2009 and was back at its old high by March 2010. It fell 24.3% in the 2020 COVID crash and recovered in under five months. In 2022 it fell 16.3% and took nearly 18 months to recover. Its deepest drop was 35.9%, from December 2000 to March 2003, and the recovery took about 44 months. Its worst calendar year was 2002, at -20.1%. Anyone drawing income during a stretch like that could end up selling shares at low prices.
XLP pays quarterly, with a 2.48% yield over the 12 months to October 29, 2026. Under the SEC's standard example, it costs $8 in the first year on $10,000. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting low-cost exposure to large US staples companies like Walmart, Costco and Procter & Gamble, at a 0.08% expense ratio.
- Those wanting a stock fund that pays quarterly, with a 2.48% yield over the 12 months to October 29, 2026.
- Investors wanting a steadier stock holding who accept it still fell 32.4% in 2008–09 and 24.3% in the 2020 crash.
Look elsewhere if
- Those wanting broad diversification: about 62% sits in 10 stocks, and Walmart plus Costco were nearly 20% as of June 30, 2026.
- Investors seeking small and midsize staples companies, since the index only includes S&P 500 members, 37 stocks as of November 30, 2025.
- Anyone uneasy owning tobacco: Philip Morris and Altria together made up about 10.7% of the fund as of June 30, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| XLP this fund | — | 0.08% | $13.65B | +20.1% | +12.8% |
| VDC Vanguard Consumer Staples ETF | 77% | 0.09% | $9.25B | +12.2% | +13.0% |
| FSTA Fidelity MSCI Consumer Staples Index ETF | 77% | 0.084% | $1.42B | +12.3% | +12.9% |
| RSPS Invesco S&P 500 Equal Weight Consumer Stapl… | 67% | 0.4% | $246.8M | +7.2% | +5.7% |
| KXI iShares Global Consumer Staples ETF | 59% | 0.41% | $1.01B | +10.3% | +11.5% |
| IYK iShares U.S. Consumer Staples ETF | 58% | 0.4% | $1.42B | +13.3% | +11.2% |
| FTXG First Trust Nasdaq Food & Beverage ETF | 35% | 0.6% | $23.4M | +6.0% | +3.1% |
| PSL Invesco Dorsey Wright Consumer Staples Mome… | 32% | 0.6% | $84.7M | +4.5% | +13.8% |
Questions investors ask
Is XLP good for retirement?
XLP may suit a defensive role, but it is not low-risk. It holds companies that sell everyday goods, and it lost just 0.82% in calendar 2022. But it fell 32.4% during the 2008 crisis and 24.3% in the 2020 crash. It pays quarterly, with a 2.48% yield as of October 29, 2026, and charges 0.08% a year. It covers only one sector with about three dozen stocks, so it is a partial holding, not a whole portfolio.
What's the difference between XLP and VDC?
The two overlap heavily: about 77% of their holdings match. XLP, from State Street, charges 0.08% a year. Vanguard's VDC charges 0.09%. XLP only holds consumer staples stocks that are in the S&P 500, so it owns a short list of big companies, with 37 in its index as of November 30, 2025. XLP is also larger, with $13.6 billion in assets as of June 30, 2026. VDC had $9.3 billion as of August 31, 2026.
Does XLP pay monthly dividends?
No. XLP pays dividends quarterly, not monthly. Over the 12 months to October 29, 2026, it paid $2.19 per share, a 2.48% yield. That income comes from the dividends of companies such as Procter & Gamble, Coca-Cola, PepsiCo and Philip Morris. The payouts can rise or fall from one quarter to the next as the companies change their own dividends.
What are XLP's top holdings?
As of June 30, 2026, XLP's largest holdings were Walmart at 10.8%, Costco at 9.0%, Procter & Gamble at 7.4%, Coca-Cola at 6.8% and Philip Morris International at 6.1%. Colgate-Palmolive, Altria, Monster Beverage, PepsiCo and Mondelez rounded out the top 10. Together, those 10 stocks made up about 62% of the fund. So a setback at one or two big names can noticeably move the fund.
How has XLP performed over the last 10 years?
XLP returned an average of 7.22% a year over the 10 years ended December 31, 2025. That is the official figure from its prospectus. Over five years it averaged 5.58% a year, and in 2025 it gained 1.56%. Results swing more in the short run. Its share price rose 18.3% in the year to October 29, 2026, but it lost 0.82% in 2022 and 0.87% in 2023.