Fidelity vs. State Street: Which Consumer Staples ETF Stands Out?
These two low-cost defensive ETFs share many similarities, but one is clearly a more attractive buy.
Fidelity vs. State Street: Which Consumer Staples ETF Stands Out?
Overview
The Fidelity MSCI Consumer Staples Index ETF (NYSEMKT:FSTA) offers broader diversification through its 96 holdings, while the State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP) provides a more concentrated portfolio with higher historical dividend yields.
Investors often turn to the consumer staples sector for stability and defensive positioning by holding companies that produce essential goods like food and hygiene products. While FSTA and XLP both target this space with identical, ultra-low costs, they differ significantly in portfolio concentration, liquidity, and historical yield payouts.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Source
Originally published at www.fool.com.
