The Consumer Staples Select Sector SPDR Fund (XLP) Has a Higher Yield but the Vanguard Consumer Staples ETF (VDC) Offers Broader Diversification

Vanguard Consumer Staples ETF (NYSEMKT:VDC) and the Consumer Staples Select Sector SPDR Fund (NYSEMKT:XLP) both target U.S. consumer staples stocks, aiming to capture the performance of companies viewed as essential to everyday spending. This comparison explores how the two funds stack up on cost, performance, risk, and what investors are actually buying.XLP has a slight edge on expenses, charging a marginally lower fee of 0.08% compared to VDC's 0.09%. Yield is also higher for XLP, making it appealing for those prioritizing income from their consumer staples allocation.The Consumer Staples Select Sector SPDR Fund is focused exclusively on the consumer defensive sector, with 100% of its assets in that category. It holds just 37 stocks, making it highly concentrated—its top holdings are Walmart (NYSE:WMT), Costco Wholesale (NASDAQ:COST), and Procter & Gamble (NYSE:PG), with a track record spanning 26.9 years. There are no leverage, currency-hedging, or ESG quirks to note.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool