The Fidelity MSCI Consumer Staples Index ETF (FSTA) and Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS) differ in cost and portfolio concentration. FSTA has a lower fee of 0.08% compared to RSPS’s 0.40% and focuses on sector giants. Both ETFs target the U.S. consumer staples sector but have different cost structures, risk profiles, and performance.

RSPS, managed by Invesco, has an expense ratio of 0.40%, a 1-year return of 14.9%, and a dividend yield of 2.5%. On the other hand, FSTA, managed by Fidelity, has an expense ratio of 0.08%, a 1-year return of 10.7%, and a dividend yield of 2.0%. RSPS has a higher max drawdown over 5 years.

FSTA tracks the MSCI USA IMI Consumer Staples Index, holding 97 stocks with 99% of assets in consumer staples. Top holdings include Walmart, Costco Wholesale, and Procter & Gamble. RSPS equally weights 38 stocks from the S&P 500, spreading sector exposure more evenly and avoiding outsize bets on mega-cap staples.

FSTA’s lower expense ratio and performance over the past five years make it a more attractive option compared to RSPS. Despite RSPS having a higher dividend yield, FSTA’s cost efficiency and performance outweigh this benefit. FSTA’s concentration in Costco and Walmart has contributed to its outperformance.

Investors looking for stability may prefer RSPS’s equal-weighted strategy due to its lower concentration risk. FSTA’s success with large sector leaders like Costco and Walmart has been a boon, but their concentration could lead to higher volatility. Consider the pros and cons before investing in these ETFs.

Read more at Yahoo Finance: FSTA Offers Lower Fees While RSPS Pays Higher Dividends