State Street or iShares: Which Consumer Staples ETF Offers Better Value?

Sarah Sidlow, The Motley Fool

Sat, July 4, 2026 astatine 7:01 AM CDT 5 min read

The user staples assemblage is often viewed arsenic a "safe haven" during periods of marketplace turbulence due to the fact that it includes companies that supply indispensable products similar groceries and cleaning supplies. This examination examines 2 of the astir fashionable vehicles for this strategy, weighing the $13.6 cardinal successful assets nether absorption (AUM) of the State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP) against the $1.3 cardinal AUM and broader manufacture scope of the iShares U.S. Consumer Staples ETF (NYSEMKT:IYK). Both ETFs connection a mode to dial down volatility successful a diversified portfolio.

Snapshot (cost & size)

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

A 0.30 percent constituent quality successful disbursal ratios mightiness look tiny astatine archetypal glance, but it importantly impacts semipermanent superior accumulation erstwhile compounded implicit decades. The little interest operation of the State Street money allows much of the underlying concern gains to stay successful the investor's relationship implicit time.

Performance & hazard examination

What's wrong

The State Street Consumer Staples Select Sector SPDR ETF concentrates astir exclusively connected the user antiaircraft assemblage astatine 99% of the portfolio, providing a pure-play acquisition for investors. It presently holds 34 stocks, which results successful a comparatively concentrated stake connected the largest home staples companies. Its apical holdings see Walmart astatine 10.4%, Costco Wholesale astatine 8.9%, and Procter & Gamble astatine 7.4%. This money was launched successful 1998 and tracks a enactment of S&P 500 components. The ETF has paid $2.20 per stock implicit the trailing 12 months, which connected its caller ~$83.1 stock terms works retired to a 2.60% yield. This absorption connected the largest bluish spot names typically leads to precocious liquidity for traders.

The iShares U.S. Consumer Staples ETF provides vulnerability to 53 holdings and reaches beyond axenic staples to see related antiaircraft industries. While user antiaircraft stocks comprise 85% of the fund, the portfolio besides includes 11% successful healthcare and 3% successful basal materials. Its largest positions see Procter & Gamble astatine 13.32%, Coca-Cola astatine 12.3%, and Philip Morris International astatine 10.8%. This broader diversification whitethorn entreaty to those seeking wider antiaircraft coverage. The money was launched successful 2000. iShares U.S. Consumer Staples ETF has paid $1.90 per stock implicit the trailing 12 months, which connected its caller ~$72.7 stock terms works retired to a 2.60% yield.