iShares US Consumer Staples ETF

IYK

Market cap $1.22B

Rising geopolitical risks, Fed uncertainty and credit card policy debates make defensive ETFs worth a look.

Amid inflation and consumer trade-down trends, XLP emerges as a defensive ETF for stability-focused investors.

The iShares U.S. Consumer Staples ETF (IYK) was launched on June 12, 2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Consumer Staples - Broad segment of the equity market.

IYK charges a higher expense ratio but covers more holdings and includes limited healthcare exposure XLP offers a slightly higher dividend yield and greater assets under management IYK has delivered stronger five-year growth, while both funds show similar drawdowns over five years

The Vanguard Consumer Staples ETF offers a lower expense ratio and broader diversification than the iShares US Consumer Staples ETF. IYK has slightly outperformed VDC over the past year and five years, with a marginally smaller maximum drawdown.

State Street Consumer Staples Select Sector SPDR ETF charges a much lower expense ratio and claims higher assets under management than iShares US Consumer Staples ETF. The State Street ETF has a slightly higher dividend yield, but both funds posted negative one-year returns as of Nov. 28, 2025.

With stocks sliding, volatility spiking and bubble concerns mounting, investors need a defensive game plan. These ETFs can help you navigate the turbulence.

XLP comes with a much lower expense ratio and a slightly higher yield than IYK. IYK holds more stocks and mixes in some healthcare exposure, while XLP focuses entirely on consumer defensive names.

Consumer staples ETFs, usually the quiet corner of the market, are suddenly in the spotlight. The $48.7 billion acquisition of Kenvue Inc. (NYSE:KVUE) by Kimberly-Clark Corp (NASDAQ:KMB) has stirred renewed interest in the sector, setting up a potential reshuffling of weightings across several big-name ETFs.

As market optimism builds, investors may want to fortify portfolios with defensive ETFs like VTV, XLP and QUAL to weather potential volatility.