Vanguard vs. State Street: Which Consumer Staples ETF Stands Out?

Erin Kennedy, The Motley Fool

Sat, June 27, 2026 astatine 8:35 AM CDT 4 min read

Vanguard Consumer Staples ETF (NYSEMKT:VDC) and State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP) connection antiaircraft exposure, but VDC provides broader diversification, portion XLP focuses connected a narrower radical of S&P 500 giants.

These ETFs people the user staples sector, which contains companies that nutrient indispensable goods similar food, beverages, and household items. Because these products stay successful request careless of economical cycles, these funds often entreaty to investors seeking stableness and accordant income during periods of marketplace turbulence. Both funds supply vulnerability to "nondiscretionary" spending, meaning they way businesses that merchantability products consumers bargain adjacent erstwhile the system slows down, offering a antiaircraft furniture to a diversified portfolio. For those prioritizing dividend income, these vehicles tin service arsenic reliable foundations wrong a blimpish strategy.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

Their disbursal ratios are astir the aforesaid (1 ground constituent is hardly worthy quibbling about). The SPDR money provides a higher trailing-12-month dividend output of 2.6% compared to the 2.2% offered by its Vanguard counterpart. While some funds are highly liquid, the SPDR money manages a larger excavation of assets nether absorption (AUM) astatine $13.8 billion, compared to $9.1 cardinal for the Vanguard fund.

Performance & hazard examination

What's wrong

The SPDR ETF focuses connected a concentrated handbasket of 35 holdings chiefly drawn from the S&P 500. It offers targeted vulnerability to large-cap U.S. companies progressive successful indispensable industries similar beverages, tobacco, and idiosyncratic hygiene products. Its largest positions see Walmart (NASDAQ:WMT) astatine 11.19%, Costco Wholesale (NASDAQ:COST) astatine 9.19%, and Procter & Gamble (NYSE:PG) astatine 7.49%. Launched successful 1998, XLP has a trailing-12-month dividend payout of $2.75 per share.

In contrast, the Vanguard ETF takes a broader attack with 103 holdings, reaching beyond the S&P 500 to see a wider assortment of businesses that proviso direct-to-consumer products. These holdings are categorized arsenic nondiscretionary based connected emblematic user spending behaviors. Its largest positions see Walmart astatine 14.49%, Costco astatine 11.83%, and Procter & Gamble astatine 8.69%. Launched successful 2004, the Vanguard money has a trailing-12-month dividend payout of $4.82.