Vanguard Consumer Staples ETF (VDC) and State Street Consumer Staples Select Sector SPDR ETF (XLP) both focus on U.S. consumer staples. VDC has a stronger five-year growth history, while XLP offers a higher dividend yield. XLP is more concentrated, with fewer holdings, compared to VDC’s broader exposure. XLP has a slightly lower expense ratio than VDC.

VDC and XLP have similar portfolio makeup but differ in cost, performance, and concentration. XLP has a higher dividend yield of 2.7% compared to VDC’s 2.2%. XLP also carries a slightly lower expense ratio. Both ETFs target consumer staples, with XLP being more concentrated and VDC offering broader exposure.

State Street Consumer Staples Select Sector SPDR ETF has a concentrated portfolio with top holdings like Walmart, Costco, and Procter & Gamble. Vanguard Consumer Staples ETF holds 103 stocks, including Walmart, Costco, and Procter & Gamble, with a broader industry coverage. Both ETFs follow a plain vanilla approach with no leverage or ESG overlay.

Income-focused investors may prefer XLP for its higher dividend yield, while those bullish on retail stocks might favor VDC. Both ETFs offer solid diversification, performance history, and low expense ratios for long-term investors. XLP and VDC provide exposure to consumer staples with slight differences in holdings and yield, catering to different investor preferences.

Read more at Yahoo Finance: Who Comes Out on Top, XLP or VDC?