The XLP ETF Offers Lower Fees and a Larger Size Than the IYK ETF

Core Insights - The State Street Consumer Staples Select Sector SPDR ETF (XLP) has lower fees, a deeper sector focus, and significantly higher assets under management compared to the iShares US Consumer Staples ETF (IYK), which has shown slightly better recent returns and a shallower maximum drawdown [1][2]. Cost and Size Comparison - XLP has an expense ratio of 0.08%, while IYK charges 0.38% [3][4]. - Both ETFs offer a dividend yield of 2.7% [3][4]. - Assets under management for XLP stand at $14.7 billion, compared to IYK's $1.2 billion [3]. Performance and Risk Analysis - Over the past five years, IYK experienced a maximum drawdown of 15.04%, while XLP had a drawdown of 16.31% [5]. - A $1,000 investment in IYK would have grown to $1,178, while the same investment in XLP would have grown to $1,163 over five years [5]. Holdings and Sector Exposure - XLP holds 36 stocks, focusing exclusively on U.S. consumer defensive companies, with major positions in Walmart, Costco, and Procter & Gamble [6]. - IYK contains 54 stocks, with a broader allocation of 85% in consumer defensive, 12% in healthcare, and 2% in basic materials, featuring top holdings like Procter & Gamble, Coca-Cola, and Philip Morris International [7]. Investment Returns - Over the last five years, IYK provided a total return of $298 on a $1,000 investment, while XLP yielded a return of $314 [8]. - Over a ten-year period, a $1,000 investment in IYK grew to $1,321, whereas XLP's equivalent investment grew to $1,010 [9].