State Street Consumer Staples Select Sector SPDR ETF

XLP

Market cap $15.2B

A golden yield-and-growth combo is something most investors assume they'll rarely find. Defensive income machines keep quietly compounding at double-digit rates. This trio could change how you think about dividend ETFs.

Looking for broad exposure to the Consumer Staples - Broad segment of the equity market? You should consider the State Street Consumer Staples Select Sector SPDR ETF (XLP), a passively managed exchange traded fund launched on December 16, 1998.

Target and Coca-Cola are of particular interest as the sector gathers steam.

In the last three months of 2025, the tech sector experienced what some called a “correction”.

XLP charges a much lower expense ratio and manages over 10 times the assets of IYK Both funds yield 2.7% and focus on U.S. consumer staples, but XLP is more concentrated and pure-play in sector exposure IYK has slightly outperformed XLP over the past year and five years, with a shallower max drawdown These 10 Stocks Could Mint the Next Wave of Millionaires ›

While consumer discretionary has upside, the consumer staples ETFs XLP, IYK, and KXI face underappreciated risks despite their reputation for resilience and stable dividends. Recent performance looks fine at first but lags the S&P 500, and XLP is more exposed to Walmart and Costco concentration, which distorts results compared to diversified ETFs. Competition is squeezing both ends as niche premium brands and cheaper private labels gain share while fast changing consumer preferences weaken the dominance of giants.

Both ETFs offer identical ultra-low expense ratios, but State Street Consumer Staples Select Sector SPDR ETF delivers a slightly higher yield. XLP is far larger and more liquid than Fidelity MSCI Consumer Staples Index ETF, though both cover the same defensive sector.

The ETFs listed below pay dividends and invest in quality blue-chip stocks. They can provide investors with relatively safe ways to invest in the stock market today.

If you're preparing for a recession, it's a good idea to think defensively about your portfolio. Consumer staple products tend to sell regardless of economic conditions.

If you are an investor who is securing profits and is buying up dividend ETFs to weather a possible downturn instead, it's not a bad idea to look back at the past and see which ones have outperformed.