Consumers Staples Select Sector SPDR Fund

XLP

Market cap $15.3B

In theory, this sector ETF should be providing shelter from the storm, but it's not. Making matters worse, it's betraying usually favorable seasonality.

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

XLP charges a much lower expense ratio and manages far more assets than RSPS. Both ETFs hold 37 consumer defensive stocks, but XLP's largest positions are more concentrated in major household names.

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.

The Consumer Staples Select Sector SPDR ETF (XLP) was launched on December 16, 1998, and is a passively managed exchange traded fund designed to offer broad exposure to the Consumer Staples - Broad segment of the equity market.

Matt Camuso, Head of ETF Solutions at BNY Investments, says there are $13 trillion of assets in ETFs. That's compared to $5 trillion a year prior.

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.

XLP and FSTA both target U.S. consumer staples. However, XLP offers a higher yield and much greater assets under management.

Investors seeking divdends might be happier with the Consumer Staples Select Sector SPDR Fund. The Vanguard Consumer Staples ETF has a larger number of holdings in its portfolio.