XLP vs. FTXG: The Clash of Consumer Staple ETFs

Core Insights - The comparison between State Street Consumer Staples Select Sector SPDR ETF (XLP) and First Trust Nasdaq Food & Beverage ETF (FTXG) highlights differences in cost, returns, risk, liquidity, and portfolio construction for investors to consider Cost & Size - XLP has a significantly lower expense ratio of 0.08% compared to FTXG's 0.60% [2][3] - As of February 14, 2026, XLP's one-year return is 11.12%, while FTXG's is 6.87% [2] - XLP offers a dividend yield of 2.14%, slightly lower than FTXG's 2.60% [2] - XLP has assets under management (AUM) of $17.24 billion, significantly higher than FTXG's $20.1 million [2] Performance & Risk Comparison - Over five years, XLP has a maximum drawdown of (16.31%), while FTXG's is (21.71%) [4] - A $1,000 investment in XLP would grow to $1,332 over five years, compared to $925 for FTXG [4] Portfolio Composition - FTXG tracks a smart beta index with 31 holdings, including major companies like PepsiCo, Archer-Daniels-Midland, and Mondelez International [5] - XLP, launched in 1998, has 39 holdings and includes top companies like Walmart, Costco, and Procter & Gamble [6] Investment Implications - XLP's lower expense ratio, higher returns, and established market presence make it a more competitive option compared to FTXG [7] - FTXG, being a younger fund, may have potential for scalability as it continues to develop its portfolio [7] - The focus of XLP on retail stores contrasts with FTXG's emphasis on food and beverage products, which may appeal to different investor preferences [8] Market Stability - Both funds provide stability during market volatility, as consumer defensive assets are essential regardless of economic conditions [9]