Which Consumer Staples ETF Offers Better Value: XLP or IYK?
State Street's XLP charges just 0.08% annually versus iShares' 0.37%, but IYK diversifies into healthcare and materials. Similar returns and low volatility make this a cost-versus-breadth trade-off.
Overview
State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP)offers a lower-cost, more concentrated approach to the sector than the broader, slightly more expensive iShares U.S. Consumer Staples ETF (NYSEMKT:IYK).
Both funds serve as defensive anchors for portfolios, focusing on companies that provide essential products like food, beverages, and household goods. While they share a core mission of providing stability, significant differences in index construction, asset concentration, and cost structures could make one a more suitable fit for specific portfolio needs.
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.