Fidelity vs. State Street: Which Consumer Staples ETF Stands Out?
Key Points
State Street Consumer Staples Select Sector SPDR ETF and Fidelity MSCI Consumer Staples Index ETF both offer ultra-low expense ratios of 0.08%.
The SPDR ETF features a more concentrated portfolio of 36 stocks and a higher dividend yield of 2.6%.
The Fidelity ETF includes 96 holdings and has generated higher total returns over the past five years.
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The Fidelity MSCI Consumer Staples Index ETF (NYSEMKT:FSTA) offers broader diversification through its 96 holdings, while the State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP) provides a more concentrated portfolio with higher historical dividend yields.
Investors often turn to the consumer staples sector for stability and defensive positioning by holding companies that produce essential goods like food and hygiene products. While FSTA and XLP both target this space with identical, ultra-low costs, they differ significantly in portfolio concentration, liquidity, and historical yield payouts.
Snapshot (cost & size)
| Metric | FSTA | XLP |
|---|---|---|
| Issuer | Fidelity | SPDR |
| Expense ratio | 0.08% | 0.08% |
| 1-yr return (as of June 16, 2026) | 5.4% | 5.4% |
| Dividend yield | 2.2% | 2.6% |
| Beta | 0.55 | 0.54 |
| AUM | $1.4 billion | $14.6 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Both funds are highly cost-efficient, each charging just 0.08% annually. However, XLP has historically provided a higher payout to investors, with its trailing-12-month dividend yield sitting 40 basis points above the yield offered by Fidelity’s fund.
Performance & risk comparison
| Metric | FSTA | XLP |
|---|---|---|
| Max drawdown (5 yr) | (16.6%) | (16.3%) |
| Growth of $1,000 over 5 years (total return) | $1,408 | $1,380 |
What's inside
The SPDR ETF focuses on large-cap stability by tracking consumer staples companies within the S&P 500. Its portfolio is relatively concentrated, with just 36 holdings, and its sector allocation consists of consumer defensive at 99% and consumer cyclical at 1%. Its largest positions include Walmart (NASDAQ:WMT) at 11.03%, Costco Wholesale (NASDAQ:COST) at 9.05%, and Procter & Gamble (NYSE:PG) at 7.2%. The fund was launched in 1998 and has a trailing-12-month dividend payout of $2.18 per share.
In contrast, the Fidelity ETF provides broader market reach by tracking the MSCI USA IMI Consumer Staples 25/50 Index with 96 holdings. It allocates 98% to consumer defensive and 2% to consumer cyclical stocks. Its top holdings are also Walmart, Costco, and P&G at 14.62%, 11.69%, and 8.69%, respectively. Fidelity’s fund, which was launched in 2013, paid $1.16 per share in dividends over the trailing 12 months. FSTA’s broader approach results in slightly more exposure to mid-cap companies compared to the SPDR fund.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
On a surface level, these two ETFs look pretty alike: same expense ratios, same one-year returns. Their identical top 10 holdings account for roughly the same proportion of their portfolios (between 62% and 65%).
Where the SPDR and Fidelity ETFs do differ, it's pretty stark. FSTA holds well over twice as many stocks, for one thing. And despite the diversification benefits one might assume would accompany that, the fact is the top three holdings account for about 36% of the portfolio. (The top three holdings only make up 27% of XLP's portfolio.) Investors' comfort level with that concentration risk may vary; Walmart and Costco delivered strong returns over the past half-decade, but P&G has trailed the market by more than 60 percentage points over the past five years. That said, it's not a foregone conclusion Walmart and Costco will continue to deliver strong returns. Both stocks have P/E ratios above 40, somewhat steep for a retail name. Investors are clearly already pricing in robust growth for both stocks.
One final key difference is their assets under management. XLP has more than $14 billion in AUM, while FSTA has about 1/10th as much. Accordingly, their average trading volume has a similar differential. Given my druthers, I'd be more inclined to buy shares of the SPDR ETF because it's less concentrated in the top names and offers more liquidity. XLP’s slightly higher dividend yield is just the cherry on top.
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Erin Kennedy has positions in Costco Wholesale. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.
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