The iShares US Consumer Staples ETF (NYSEARCA:IYK) stands out for its size and higher recent returns, while the First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) focuses more narrowly on food and beverage companies, offers a slightly higher yield, and charges higher fees. Both IYK and FTXG give investors exposure to U.S. consumer staples, but they take different approaches. IYK delivers a broad basket spanning major household names, while FTXG narrows its focus to food and beverage firms, using a smart ...

Core Insights - The State Street Consumer Staples Select Sector SPDR ETF (XLP) and the iShares US Consumer Staples ETF (IYK) provide exposure to the U.S. consumer staples sector, with XLP being more cost-effective and focused on consumer defensive stocks, while IYK includes healthcare stocks and has a broader portfolio [1][2][9] Cost Comparison - XLP has an expense ratio of 0.08%, significantly lower than IYK's 0.38%, making it more appealing for long-term cost-conscious investors [3][4] - Both ETFs offer a dividend yield of 2.75% [3] Performance Metrics - The 1-year return for XLP is 9.9%, while IYK has a higher return of 11.3% [3] - Over five years, XLP experienced a maximum drawdown of 16.31%, compared to IYK's 15.04% [5] - A $1,000 investment in XLP would have grown to $1,302 over five years, while IYK would have grown to $1,222 [5] Portfolio Composition - IYK holds 54 positions, with 85% in consumer defensive stocks, 11% in healthcare, and 2% in basic materials, featuring top holdings like Procter & Gamble (14.25%), Coca-Cola (11.70%), and Philip Morris International (11.31%) [5][6] - XLP maintains a concentrated portfolio of 36 stocks, exclusively in the consumer defensive sector, with major holdings in Walmart, Costco, and Procter & Gamble [6][8] Investment Strategy - XLP is suitable for investors seeking pure, low-cost exposure to consumer staples, particularly those who believe in the long-term potential of retail giants like Walmart and Costco [9] - IYK may appeal to those looking for diversification beyond consumer staples, including healthcare exposure, albeit at a significantly higher fee [9]

Core Insights - The main differences between the State Street Consumer Staples Select Sector SPDR ETF (XLP) and iShares US Consumer Staples ETF (IYK) are cost, sector purity, and size, with XLP offering lower expenses and a sharper focus on consumer staples [1][2] Cost and Size Comparison - XLP has an expense ratio of 0.08%, significantly lower than IYK's 0.38% [3][4] - As of November 28, 2025, XLP has a 1-year return of -4.1%, while IYK has a return of -1.8% [3] - XLP has a larger Assets Under Management (AUM) of $15.5 billion compared to IYK's $1.3 billion [3] Performance and Risk Analysis - Over the last five years, IYK has a max drawdown of -15.05%, while XLP has a slightly higher drawdown of -16.29% [5] - An investment of $1,000 in IYK would have grown to $1,266 over five years, compared to $1,186 for XLP [5][10] Portfolio Composition - XLP consists of 37 holdings focused entirely on consumer defensive companies, with major positions in Walmart, Costco, and Procter & Gamble [6] - IYK has a broader portfolio with 55 holdings, including 86% in consumer defensive stocks and 12% in healthcare, featuring companies like Procter & Gamble and Coca-Cola [7] Investment Strategy - XLP emphasizes direct retailing, while IYK includes a mix of sectors, appealing to investors seeking diversification beyond consumer staples [8][9] - Despite IYK's higher expense ratio, it has delivered higher returns, suggesting that the cost may be justified for investors [10]