XLP is a more cost-effective option compared to RSPS, boasting a lower expense ratio. Both ETFs offer a 2.7% yield and focus on U.S. consumer staples stocks. XLP is larger and more liquid, tracking the sector’s top companies by market cap, while RSPS uses an equal-weight approach.

XLP has an expense ratio of 0.08% and a 1-year return of 4.5%, compared to RSPS’s 0.40% expense ratio and 6.6% return. XLP has an AUM of $15.5 billion, while RSPS has $237.2 million. The two funds aim to provide exposure to the consumer staples sector with differing approaches.

XLP emphasizes large companies like Walmart and Costco, while RSPS takes an equal-weighted approach with companies like Monster Beverage and Dollar Tree. XLP’s performance is driven by sector giants, while RSPS offers exposure to smaller players. Selecting between the two depends on company size preference and fee tolerance.

Consumer staples stocks have faced challenges due to inflation and tariffs. XLP and RSPS offer diversification from tech-heavy S&P 500. XLP’s focus on big companies has led to better performance, while RSPS’s equal weighting may appeal to those favoring small- and medium-cap companies. Capital rotation may influence future performance.

XLP outperforms RSPS due to its focus on large companies and lower expenses. RSPS may attract investors who prefer smaller companies. Both ETFs provide exposure to consumer staples and offer diversification opportunities. Consider the size of companies and fees when selecting between XLP and RSPS.

Read more at Yahoo Finance: Is XLP’s Focus on Consumer Staples Heavyweights a Winning Strategy?