The State Street Consumer Staples Select Sector SPDR ETF (XLP) boasts lower fees, deeper sector focus, and significantly higher assets under management compared to the iShares US Consumer Staples ETF (IYK). Despite IYK slightly outperforming XLP in recent years, both funds offer a 2.7% dividend yield to investors.

XLP and IYK both aim to provide exposure to U.S. consumer staples stocks, known for their defensive characteristics and steady dividends. XLP is more concentrated and pure-play in sector exposure, with 36 stocks in its portfolio, while IYK holds 54 stocks with a slightly broader sector allocation.

XLP charges a lower expense ratio of 0.08% compared to IYK’s 0.38%. Despite this, both funds offer the same 2.7% dividend yield. Investors may find cost savings to be a deciding factor for those sensitive to fees in their investment decisions.

Over the past five years, investors have seen nearly identical returns from IYK and XLP. IYK has shown slightly stronger performance in late 2020 through early 2021, but both funds have delivered similar outcomes in terms of total return for investors.

The iShares US Consumer Staples ETF and the State Street Consumer Staples Select Sector SPDR ETF both focus on the consumer goods sector, with IYK tracking the Russell 1000 Consumer Staples Index, while XLP tracks the Consumer Staples Select Sector Index, limited to stocks in the S&P 500 index.

Read more at Yahoo Finance: The XLP ETF Offers Lower Fees and a Larger Size Than the IYK ETF