XLP vs. VDC: Which Consumer Staples ETF Is the Better Buy?
Dividend yield and portfolio concentration set these two funds apart for investors.
XLP vs. VDC: Which Consumer Staples ETF Is the Better Buy?
Overview
The State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP) and the Vanguard Consumer Staples ETF (NYSEMKT:VDC) offer similar defensive exposure, but XLP has lower fees and a higher yield, while VDC diversifies across many more holdings.
Investors seeking shelter from market volatility often turn to consumer staples, which provide essential goods like food, beverages, and personal hygiene products. These funds are sometimes used as core components of a low-volatility portfolio strategy.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year 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.



