State Street Consumer Staples Select Sector SPDR ETF
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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.
Sector value scores have deteriorated, but beverages and food remain notably undervalued versus 11-year baselines; tobacco is deeply overvalued with low quality. XLP has lagged the S&P 500 since 1999, offering lower risk but also inferior risk-adjusted performance. RSPS offers a more balanced approach for investors seeking diversification.
XLP charges a much lower expense ratio and manages far more assets than RSPS. Both funds have earned similar total returns, but XLP features deeper concentration in mega-cap staples leaders.
XLP charges a slightly lower expense ratio and offers a higher dividend yield than VDC VDC outperformed XLP on five-year total return, but both funds saw similar maximum drawdowns XLP holds fewer stocks with a tighter focus on consumer defensive names, while VDC adds a small cyclical tilt These 10 Stocks Could Mint the Next Wave of Millionaires ›
Amid inflation and consumer trade-down trends, XLP emerges as a defensive ETF for stability-focused investors.
Fresh inflation and sentiment data can benefit growth and consumer ETFs as traders gauge the likelihood of a December rate cut.
The Dividend Growth Trifecta—quality, yield, and growth—remains my core focus for portfolio construction in an expensive market. Industry leaders like Ares Management Corporation and Blackstone Inc. offer superior risk-adjusted returns; I prefer buying dips in top names over chasing value in lower-quality peers. Schwab U.S. Dividend Equity ETF™ is off my buy list due to sector reconstitution and dimmed double-digit dividend growth prospects, despite holding a large position.
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
XLP is much cheaper to own, with a significantly lower expense ratio than RSPS Both funds yield around 2.7% and target the same sector, but XLP is far larger and more liquid RSPS uses an equal-weight approach, while XLP tracks the sector's largest names by market cap
There are thousands of ETFs across various sectors and investment strategies. Investors preparing for a possible recession may want to think defensively.
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.
State Street Investment Management (SSIM) has been the investment advisor for the Select Sector SPDR ETFs since 1998. It will now take over the distribution and marketing for these funds.
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.
As market optimism builds, investors may want to fortify portfolios with defensive ETFs like VTV, XLP and QUAL to weather potential volatility.