Which Consumer Staples ETF Is a Better Buy: Invesco's RSPS or SPDR's XLP?
State Street's market-cap approach delivered 22% stronger 5-year gains, but Invesco's equal-weight strategy offers more balanced exposure.
Overview
Investors comparing Invesco S&P 500 Equal Weight Consumer Staples ETF and State Street Consumer Staples Select Sector SPDR ETF must weigh the State Street fund's lower costs and market-cap dominance against the Invesco fund's balanced, equal-weighted approach.
Consumer staples offer a defensive cushion during market volatility. While both funds hold 35 of the same large-cap names, they differ fundamentally in weighting. The State Street fund follows the traditional market-cap model, favoring giants like Walmart(NASDAQ:WMT), while the Invesco fund levels the playing field to prevent a few firms from dominating the portfolio.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.