State Street Consumer Staples Select Sector SPDR ETF (XLP) offers a slightly higher yield compared to Fidelity MSCI Consumer Staples Index ETF (FSTA), despite both having ultra-low expense ratios. XLP is larger, more liquid, and more concentrated in top positions, while FSTA holds nearly three times as many stocks.

FSTA and XLP both target the U.S. consumer staples sector, providing defensive exposure to household names. With similar expense ratios, the deciding factors for investors are cost, structure, and portfolio nuances. XLP has a slightly higher yield at 2.7% versus FSTA’s 2.3%, making it appealing to income-focused investors.

XLP tracks the Consumer Staples Select Sector Index, consisting of 36 U.S. companies in the consumer defensive sector. Its top holdings include Walmart, Costco Wholesale, and Procter & Gamble, with $14.9 billion in assets under management, translating to high liquidity. FSTA has a broader portfolio with 104 holdings and a similar sector tilt, offering more diversification within the sector.

Both ETFs have an expense ratio of 0.08%, with XLP providing a higher yield at 2.7% compared to FSTA’s 2.3%. XLP’s focus on large-cap U.S. consumer staples companies results in greater liquidity due to its larger AUM. Conversely, FSTA offers more sector diversification with over 100 holdings, appealing to investors seeking a broader exposure within the industry.

Ultimately, the choice between Fidelity MSCI Consumer Staples Index ETF (FSTA) and State Street Consumer Staples Select Sector SPDR ETF (XLP) comes down to greater diversification with FSTA or superior liquidity and higher dividend with XLP. Both are excellent defensive choices for a portfolio targeting the consumer staples sector.

Read more at Yahoo Finance: State Street’s XLP vs. Fidelity’s FSTA