Vanguad vs. iShares: Which Consumer Staples ETF Reigns Supreme, VDC or KXI?

Core Insights - The Vanguard Consumer Staples ETF (VDC) is U.S.-focused with lower costs and larger assets under management, while the iShares Global Consumer Staples ETF (KXI) offers global diversification with a higher fee and slightly higher yield [1][2] Cost and Size Comparison - VDC has an expense ratio of 0.09% and assets under management (AUM) of $8.5 billion, while KXI has an expense ratio of 0.39% and AUM of $884.8 million [3][4] - The one-year return for VDC is 9.0%, compared to KXI's 14.8%, and both have a similar dividend yield, with VDC at 2.26% and KXI at 2.30% [3][4] Performance and Risk Analysis - Over the past five years, VDC has a maximum drawdown of 16.55%, while KXI has a drawdown of 17.43% [5] - A $1,000 investment in VDC would have grown to $1,481 over five years, compared to $1,322 for KXI [5] Portfolio Composition - KXI invests in 96 companies, with 97% in consumer defensive stocks and 3% in consumer cyclical stocks, including major holdings like Walmart and Costco [6] - VDC is heavily U.S.-centric, with 98% in consumer defensive stocks, and its largest positions include Walmart, Costco, and Procter & Gamble [7] Investment Implications - VDC has generated annualized total returns of 9.5% since 2006, outperforming KXI's 7.6%, despite both funds having similar top holdings [8] - KXI offers more international exposure, with only 60% of its holdings in U.S. stocks, while VDC's core holdings are primarily U.S.-based but generate significant overseas sales [10] - The lower expense ratio of VDC makes it a more attractive option for cost-conscious investors, especially given its long-term outperformance [11]