Market Overview - January 2026 began with volatility due to rising geopolitical complexities and renewed trade tensions, with the S&P 500 falling about 2% and the CBOE Volatility Index rising around 34% since the start of February [1] - The "AI scare" trade has intensified market volatility and investor nervousness, leading to a broader risk-off shift [4][7] Consumer Staples Sector - Consumer staples funds are gaining attention as they offer resilience and steady returns, with the S&P 500 Consumer Staples Index gaining 9.97% over the past year and 15.58% year-to-date [2] - Increasing exposure to consumer staples can provide balance and stability to portfolios amid market volatility, offering downside protection during pullbacks and steady participation during market upswings [3] Economic Indicators - Rising U.S. national debt is a concern, with projections indicating federal debt could reach $56 trillion or 120% of GDP by 2036, impacting investor confidence and discretionary spending [5][6] - The Consumer Confidence Index fell to 84.5 in January, a decline of 9.7 points from December, indicating a long-term slump in consumer confidence [8][10] - Preliminary results from the University of Michigan show a modest improvement in consumer sentiment in February, with the Index of Consumer Sentiment rising 1.6% to 57.3, though still down 11.4% year-over-year [11] Investment Opportunities - Defensive sectors, particularly consumer staples ETFs like XLP, VDC, and IYK, are seen as smart additions to portfolios in the current uncertain macroeconomic environment [9][12] - XLP is noted for its liquidity with an average trading volume of 24.24 million shares and an asset base of $17.26 billion, making it suitable for active trading strategies [13]

Core Insights - The Vanguard Consumer Staples ETF (VDC) and the Fidelity MSCI Consumer Staples Index ETF (FSTA) are designed to capture the performance of the U.S. consumer staples sector, focusing on essential goods [1][2] Cost & Size Comparison - VDC has an expense ratio of 0.09% while FSTA has a slightly lower expense ratio of 0.08% - The one-year return for VDC is 8.45% compared to FSTA's 8.16% - VDC offers a dividend yield of 2.10%, while FSTA provides a marginally higher yield of 2.18% - VDC has assets under management (AUM) of $9.1 billion, significantly larger than FSTA's $1.4 billion [3][9] Performance & Risk Comparison - Both ETFs have experienced similar maximum drawdowns over five years, with VDC at -16.56% and FSTA at -16.57% - The growth of $1,000 over five years is nearly identical, with VDC growing to $1,409 and FSTA to $1,406 [4][7] Portfolio Composition - FSTA tracks the MSCI USA IMI Consumer Staples 25/50 Index and holds 96 stocks, with major positions in Costco Wholesale, Walmart, and Procter & Gamble [5] - VDC invests in 105 holdings, also featuring Walmart, Costco Wholesale, and Procter & Gamble among its top stocks [6][7] Investor Implications - VDC and FSTA are nearly identical in performance, volatility, and portfolio composition, with only minor differences in AUM, expense ratios, and dividend yields [7][8]

Cost, diversification, and portfolio strategy set these two consumer staples ETFs apart for investors seeking sector exposure.The Fidelity MSCI Consumer Staples Index ETF (FSTA +1.24%) and the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS +1.46%) both target U.S. consumer staples stocks, but they take different approaches.FSTA tracks a market-cap-weighted index, heavily favoring the sector’s largest players, while RSPS equally weights all S&P 500 consumer staples constituents. This comparison unpa ...

Core Insights - The Fidelity MSCI Consumer Staples Index ETF (FSTA) and the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS) target U.S. consumer staples stocks but employ different strategies leading to distinct outcomes [1] Cost & Size - FSTA has a significantly lower expense ratio of 0.08% compared to RSPS's 0.40%, resulting in annual fees of $8 versus $40 for every $10,000 invested [2][3] - As of February 3, 2026, FSTA has a 1-year return of 8.34%, while RSPS has a return of 7.01% [2] - FSTA has a larger asset under management (AUM) of $1.3 billion compared to RSPS's $232 million [2] Performance & Risk Comparison - Over five years, FSTA has a lower maximum drawdown of -16.57% compared to RSPS's -18.61% [4] - An investment of $1,000 in FSTA would grow to $1,385 over five years, while the same investment in RSPS would grow to $1,067 [4] Holdings Composition - FSTA holds 96 stocks, primarily in consumer defensive sectors (98%), with top positions in Costco Wholesale, Walmart, and Procter & Gamble making up nearly 37% of its assets [5] - RSPS, in contrast, holds 36 stocks with an equal-weight strategy, where each stock constitutes roughly 3% of the portfolio, promoting a more balanced exposure [6] Investment Implications - FSTA's concentration in large brands may benefit investors when these companies perform well, but could pose risks if they underperform [7] - RSPS's equal-weight approach may reduce volatility, as all stocks are treated equally, potentially leading to more stable performance [8] - There is no definitive winner between the two ETFs, as each offers unique advantages that may appeal to different investor preferences [9]

Core Insights - The Fidelity MSCI Consumer Staples Index ETF (FSTA) offers lower costs, broader diversification, and higher recent total returns compared to the Invesco Food & Beverage ETF (PBJ) [1][2] Cost and Size Comparison - FSTA has an expense ratio of 0.08%, significantly lower than PBJ's 0.61% - As of January 30, 2026, FSTA's one-year return is 7.6%, while PBJ's is only 1.9% - FSTA provides a higher dividend yield of 2.34% compared to PBJ's 1.83% - FSTA has assets under management (AUM) of $1.32 billion, whereas PBJ has $94.08 million [3][4] Performance and Risk Comparison - Over five years, FSTA has a max drawdown of 16.59%, slightly worse than PBJ's 15.84% - An investment of $1,000 in FSTA would grow to $1,524, compared to $1,379 for PBJ [5] Portfolio Composition - FSTA tracks a broad index with 97 holdings, primarily in consumer defensive companies (98%), including major names like Costco, Walmart, and Procter & Gamble - PBJ is more concentrated with only 30 holdings, focusing on momentum, quality, and value, with 89% in consumer defensive stocks and top positions in Sysco, Corteva, and Monster Beverage [6][7] Investment Implications - Since 2013, FSTA has outperformed PBJ with annualized total returns of 8.9% versus 6.6% for PBJ, largely due to PBJ's higher expense ratio and lower dividend yield [9][10]

Core Insights - The Fidelity MSCI Consumer Staples Index ETF (FSTA) and the First Trust Nasdaq Food & Beverage ETF (FTXG) both focus on the defensive side of the U.S. stock market but differ in their investment approach and sector focus [1] Cost & Size Comparison - FTXG has an expense ratio of 0.60%, while FSTA has a significantly lower expense ratio of 0.08% [2] - As of January 29, 2026, FTXG reported a 1-year return of -1.54%, compared to FSTA's 4.29% [2] - FTXG offers a higher dividend yield of 2.94% versus FSTA's 2.24% [2] - FTXG has assets under management (AUM) of $16.7 million, while FSTA has a much larger AUM of $1.3 billion [2] Performance & Risk Comparison - Over the past five years, FTXG experienced a maximum drawdown of -21.68%, while FSTA had a lower maximum drawdown of -16.57% [4] - An investment of $1,000 in FTXG would have grown to $907, whereas the same investment in FSTA would have grown to $1,311 over five years [4] Portfolio Composition - FSTA aims to replicate the MSCI USA IMI Consumer Staples 25/50 Index and includes 96 holdings, providing broad diversification within consumer staples [5] - The top three holdings in FSTA—Costco Wholesale, Walmart, and Procter & Gamble—constitute nearly 37% of its assets [5] - FTXG targets the Nasdaq US Smart Food & Beverage Index and is more concentrated with only 30 holdings [6] - The top three stocks in FTXG—Archer-Daniels-Midland, PepsiCo, and Mondelez International—account for over 23% of its assets [6] Investment Implications - Consumer staples stocks are generally considered safer investments, less impacted by economic fluctuations, making ETFs like FSTA and FTXG appealing for stability [7] - FSTA's broader approach includes a wider range of consumer staples, while FTXG's focus on food and beverage may yield higher returns due to its targeted strategy [8][9]

Core Insights - The State Street Consumer Staples Select Sector SPDR ETF (XLP) is a passively managed ETF launched on December 16, 1998, providing broad exposure to the Consumer Staples sector [1] - The ETF is the largest in its category with over $14.9 billion in assets, aiming to match the performance of the Consumer Staples Select Sector Index [3] - It has a low expense ratio of 0.08% and a 12-month trailing dividend yield of 2.67%, making it an attractive option for investors [4] Fund Details - XLP seeks to replicate the performance of the Consumer Staples Select Sector Index, which represents the consumer staples sector of the S&P 500 Index [3] - The ETF has a 100% allocation in the Consumer Staples sector, providing diversified exposure [5] - The top three holdings include Walmart Inc (11.83%), Costco Wholesale Corp, and Procter & Gamble Co, with the top 10 holdings comprising 61.12% of total assets [6] Performance Metrics - As of January 13, 2026, the ETF has increased by approximately 3.22% year-to-date and 7.83% over the past year, trading between $75.6 and $83.6 in the last 52 weeks [7] - The ETF has a beta of 0.51 and a standard deviation of 11.61% over the trailing three-year period, indicating medium risk [7] Alternatives - XLP carries a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Consumer Staples sector [8] - Other alternatives include Fidelity MSCI Consumer Staples Index ETF (FSTA) with $1.35 billion in assets and Vanguard Consumer Staples ETF (VDC) with $7.47 billion, both with competitive expense ratios [10]

Core Insights - The article compares two ETFs targeting the U.S. consumer staples sector: Fidelity MSCI Consumer Staples Index ETF (FSTA) and State Street Consumer Staples Select Sector SPDR ETF (XLP), highlighting their differences in portfolio structure, yield, and liquidity [4][5][10]. Group 1: Portfolio Structure - FSTA holds 104 stocks with a sector tilt of 98% towards consumer defensive, providing broader diversification compared to XLP, which has only 36 holdings [1][8]. - XLP's top holdings include Walmart, Costco Wholesale, and The Procter & Gamble Co., which constitute a significant portion of its assets, indicating a concentrated investment approach [2][5]. - FSTA's top five holdings represent a larger percentage of its total portfolio compared to XLP, making it somewhat top-heavy [9]. Group 2: Yield and Expense Ratio - Both ETFs charge a low expense ratio of 0.08%, but XLP offers a higher yield of 2.7% compared to FSTA's 2.3%, appealing to income-focused investors [3][5]. Group 3: Liquidity and Size - XLP has $14.9 billion in assets under management (AUM), making it larger and more liquid than FSTA, which may benefit investors looking for ease in executing large trades [2][8]. - The greater liquidity of XLP is a significant advantage over FSTA, despite both ETFs covering the same defensive sector [5][10].

Group 1: Consumer Shopping Trends - A record 158.9 million consumers are expected to have shopped on "Super Saturday," reflecting a 1.1% increase from 157.2 million last year and surpassing the previous record of 158.5 million in 2022 [1] - Despite economic challenges, the late-season shopping surge is anticipated to help retailers close the final quarter stronger, supporting earnings growth and ETFs linked to consumer staples and retail benchmarks [2] - Consumers are shifting towards quality and meaningful gifts rather than just seeking discounts, indicating a "tactical consumer" approach amid a "two-speed" economy [4] Group 2: Retail Sales Outlook - Holiday spending is projected to exceed $1 trillion, but growth will primarily be driven by higher prices rather than increased consumer spending, with S&P Global Ratings forecasting a 4% growth in U.S. holiday sales for 2025 [5] - Analysts expect modestly positive retail sales in 2026, influenced by tariff-related inflation and some growth in consumer staples, despite weak discretionary spending [8] Group 3: ETFs Benefiting from Trends - ETFs focusing on consumer staples and those with robust omnichannel networks, such as Walmart and Amazon, are expected to benefit from the current shopping trends and sustained holiday demand [9][10] - Specific ETFs highlighted include: - VanEck Retail ETF (RTH) with assets of $248 million, top holdings in AMZN (19.53%), WMT (11.79%), and COST (8.06%), and an 11.6% year-to-date increase [11] - ProShares Online Retail ETF (ONLN) with an average market cap of $179.17 billion, top holdings in AMZN (23.35%), BABA (11.44%), and EBAY (8.11%), and a 31.9% year-to-date surge [12] - Global X E-commerce ETF (EBIZ) with net assets of $51 million, top holdings in Expedia (6.10%), SHOP (5.57%), and BABA (4.87%), and a 19.4% year-to-date increase [13] - Fidelity MSCI Consumer Staples Index ETF (FSTA) with net assets of $1.33 billion, top holdings in WMT (14.48%), COST (11.96%), and Procter and Gamble (10.05%), and a 2.4% year-to-date gain [14]

Core Insights - The Vanguard Consumer Staples ETF (VDC) has a larger asset base and a longer track record compared to the Fidelity MSCI Consumer Staples Index ETF (FSTA), making it a more established option for investors [1][10]. Cost & Size - FSTA has an expense ratio of 0.08%, while VDC's is slightly higher at 0.09%, indicating that FSTA is marginally more affordable [3][4]. - As of the latest data, FSTA manages $1.3 billion in assets under management (AUM), whereas VDC has $7.4 billion in AUM, highlighting VDC's significant size advantage [3][10]. Performance & Risk - Over the past year, FSTA has returned -2.7% and VDC has returned -2.4%, showing that VDC has performed slightly better [3][15]. - The maximum drawdown over five years for FSTA is -17.08%, while VDC's is -16.54%, indicating that VDC has experienced less volatility [5]. Portfolio Composition - VDC holds 107 stocks primarily focused on consumer defensive companies, with top holdings including Walmart, Costco, and Procter & Gamble [6]. - FSTA has a similar focus, with 98% of its holdings in consumer defensive stocks and also includes Walmart, Costco, and Procter & Gamble among its top holdings [7]. Historical Performance - VDC has been operational for nearly 22 years, while FSTA was launched in 2013, giving VDC a historical performance advantage [10]. - Since FSTA's inception, it has achieved a compound annual growth rate (CAGR) of 8.5%, while VDC has a CAGR of 8.7%, indicating comparable long-term performance [15].