The Vanguard Consumer Staples ETF (VDC) offers lower costs, broader diversification, and slightly stronger recent performance compared to the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS). VDC has delivered better one-year returns and has a narrower historical drawdown. Both focus on consumer staples but have different approaches to weighting and holdings.

VDC holds 105 stocks, with top positions in Walmart, Costco, and Procter & Gamble. It has a long track record, pays dividends quarterly, and has an expense ratio of 0.09%. RSPS, on the other hand, equally weights 38 stocks from the S&P 500 Consumer Staples Index. It provides more exposure to mid-sized companies but with less diversification than VDC.

Investors choose consumer staples ETFs for reliable dividends and lower volatility. VDC and RSPS cater to defensive sector coverage. VDC is market-cap weighted, while RSPS equally weights holdings. The former has a lower expense ratio at 0.09% and stronger recent returns, while the latter offers a slightly higher dividend yield at 2.7%.

When comparing VDC and RSPS, investors need to consider cost, risk, performance, and portfolio makeup. VDC has a lower expense ratio, higher returns, and a broader diversification. On the other hand, RSPS spreads risk more evenly across fewer holdings. Both ETFs provide exposure to U.S. consumer staples stocks and can serve as portfolio anchors during economic uncertainty.

Read more at Yahoo Finance: Broad Diversification or Balanced Bets for Consumer Staples Investors?