Battle of the Consumer Staples ETFs: Who Comes Out on Top, XLP or VDC?

2 weeks ago 15

Jake Lerch, The Motley Fool

Thu, December 4, 2025 astatine 9:02 AM CST 5 min read

XLP carries a astir identical disbursal ratio to VDC but sports a higher dividend yield
VDC has delivered stronger five-year growth, though some funds amusement akin drawdowns
XLP has acold less holdings and is much concentrated, portion VDC offers broader user staples exposure
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Vanguard Consumer Staples ETF (VDC) and State Street Consumer Staples Select Sector SPDR ETF (XLP) some people U.S. user staples, but disagree successful portfolio breadth, yield, and concentration.

Both funds are designed to springiness investors vulnerability to the user staples sector, focusing connected companies seen arsenic indispensable for mundane living. This examination looks astatine cost, performance, portfolio makeup, and unsocial attributes for Vanguard Consumer Staples ETF and State Street Consumer Staples Select Sector SPDR ETF.

Metric

VDC

XLP

Issuer	Vanguard	SPDR
Expense ratio	0.09%	0.08%
1-yr instrumentality (as of 2025-11-28)	-3.4%	-4.6%
Dividend yield	2.2%	2.7%
Beta	0.67	0.62
AUM	$8.3 billion	$15.5 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

XLP is somewhat much affordable connected fees, and it besides offers a higher dividend yield, which whitethorn entreaty to income-focused investors. The quality successful disbursal ratio is minimal, but the output spread is much pronounced.

Metric

VDC

XLP

Max drawdown (5 y)	-16.54%	-16.29%
Growth of $1,000 implicit 5 years	$1,255	$1,186

State Street Consumer Staples Select Sector SPDR ETF focuses exclusively connected the user antiaircraft sector, holding conscionable 37 companies arsenic of its 27th year. Its portfolio is tightly concentrated, with apical positions including Walmart (NYSE:WMT), Costco Wholesale (NASDAQ:COST), and Procter & Gamble (NYSE:PG). XLP seeks to reflector the Consumer Staples Select Sector Index, which carves retired staples from the S&P 500, resulting successful a focused, large-cap tilt.

Vanguard Consumer Staples ETF, meanwhile, spans 103 stocks, offering broader sum crossed the user antiaircraft abstraction with a flimsy allocation to user cyclical and concern names. Its largest holdings are similar—Walmart, Costco Wholesale, and Procter & Gamble—but VDC’s broader roster includes smaller and mid-sized firms that whitethorn not look successful XLP. Both funds are plain vanilla successful approach, with nary leverage, currency hedge, oregon ESG overlay.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.