Which Is the Better Consumer Staples ETF: Fidelity's FSTA or iShares' IYK?

Core Insights - The Fidelity MSCI Consumer Staples Index ETF (FSTA) offers lower costs, broader stock coverage, and stronger recent returns compared to the iShares U.S. Consumer Staples ETF (IYK) [1][2] Cost and Size Comparison - FSTA has an expense ratio of 0.08%, significantly lower than IYK's 0.38% - As of March 24, 2026, FSTA's one-year return is 7.5%, while IYK's is 4.1% - IYK provides a higher dividend yield of 2.4% compared to FSTA's 2.0% - FSTA has assets under management (AUM) of $1.5 billion, slightly higher than IYK's $1.3 billion [3][4] Performance and Risk Comparison - Over five years, FSTA has a maximum drawdown of -16.58%, which is worse than IYK's -15.05% - A $1,000 investment in FSTA would grow to $1,256 over five years, compared to $1,201 for IYK [5] Portfolio Composition - FSTA is heavily focused on the consumer defensive sector, with 98% of its holdings, and includes 104 companies - Major holdings in FSTA include Walmart, Costco, and Procter & Gamble, which constitute a significant portion of the portfolio - IYK has a different composition, with 85% in consumer defensive, 11% in healthcare, and 2% in basic materials, holding 54 stocks - Top holdings in IYK include Procter & Gamble, Coca-Cola, and Philip Morris [6][7] Investment Implications - Investing in the consumer staples sector is beneficial for portfolio stability during macroeconomic uncertainty and provides passive income through dividends - FSTA is noted for its low expense ratio and better recent performance, despite a higher maximum drawdown [8][9]