The State Street Consumer Staples Select Sector SPDR ETF (XLP) and First Trust Nasdaq Food & Beverage ETF (FTXG) are compared based on cost, returns, risk, liquidity, and portfolio. XLP has a lower expense ratio of 0.08% compared to FTXG’s 0.60%, with higher 1-yr return of 11.12% and AUM of $17.24 billion.
FTXG, launched in 1998, tracks a smart beta index with 31 U.S. food and beverage companies. Its expense ratio is higher at 0.60% but offers a slightly higher dividend yield. XLP, established in 1998, focuses on consumer defensive ETFs with top holdings like Walmart and Costco.
Both XLP and FTXG offer stability during market volatility due to consumer staples being a hedge against economic downturns. FTXG leans towards food and beverage companies while XLP’s top holdings are retail stores, providing a niche difference in the broad sector.
Investors considering First Trust Nasdaq Food & Beverage ETF should be aware that it was not among the Motley Fool Stock Advisor’s top 10 stocks to buy now. Stock Advisor has a total average return of 884%, outperforming the S&P 500, and offers guidance on ETF investing.
Read more at Yahoo Finance: The Clash of Consumer Staple ETFs
