Fidelity MSCI Consumer Staples Index ETF

FSTA

Market cap $1.42B

The Fidelity MSCI Consumer Staples Index ETF (FSTA) carries a significantly lower expense ratio of 0.08% compared to the 0.61% charged by Invesco Food & Beverage ETF (PBJ). PBJ maintains a concentrated portfolio of 31 holdings, while FSTA offers broader exposure with 98 positions.

The LSEG Retail/Restaurant Index reported Q1 2026 earnings growth of 27.2%. Retail earnings in the first quarter of 2026 received a significant boost from a historic tax refund season, reinforcing consumer spending at a time when the labor market remained resilient. Q2 2026 earnings are currently expected to mark the weakest growth rate of the year, with consensus forecasts calling for a gradual improvement during the second half of the year.

State Street Consumer Staples Select Sector SPDR ETF and Fidelity MSCI Consumer Staples Index ETF both offer ultra-low expense ratios of 0.08%. The SPDR ETF features a more concentrated portfolio of 36 stocks and a higher dividend yield of 2.6%.

Launched on October 21, 2013, the Fidelity MSCI Consumer Staples Index ETF (FSTA) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Staples - Broad segment of the equity market.

Fidelity MSCI Consumer Staples Index ETF offers a lower expense ratio while Vanguard Consumer Staples ETF manages a much larger pool of assets. Vanguard Consumer Staples ETF has a longer historical track record having launched nearly a decade before its Fidelity counterpart.

Consumer pessimism and market volatility may push investors toward defensive ETFs, strengthening the appeal of consumer staple funds.

The Fidelity MSCI Consumer Staples Index ETF is good for diversification, low costs, and competitive returns versus peers, despite high valuations. FSTA's top holdings, WMT, COST, and PG, drive sector performance and exhibit stable cash flows, robust dividend safety, and growth grades. The consumer staples sector trades at historically elevated valuations, justified by market demand for stability amid high global debt and persistent inflation.

Consumer staples ETFs including State Street Consumer Staples Select Sector SPDR (XLP), Vanguard Consumer Staples Index Fund ETF Shares (VDC), and Fidelity MSCI Consumer Staples Index ETF (FSTA) all carry beta around 0.66-0.69, meaning they decline roughly two-thirds as much as the broader market during selloffs, preserving capital when growth stocks crater.

Looking for broad exposure to the Consumer Staples - Broad segment of the equity market? You should consider the Fidelity MSCI Consumer Staples Index ETF (FSTA), a passively managed exchange traded fund launched on October 21, 2013.

FSTA charges a much lower expense ratio and is significantly larger than RSPS RSPS offers a higher dividend yield, while FSTA has delivered stronger recent returns and shallower drawdowns FSTA holds over 100 stocks with a heavy tilt to mega-cap staples, while RSPS equally weights just 35 stocks in the sector