XLP vs. FTXG: The Clash of Consumer Staple ETFs
Key Points
XLP has nearly doubled FTXG's price return within the last 12 months.
FTXG has lagged compared to XLP in both recent returns and five-year growth.
- 10 stocks we like better than First Trust Exchange-Traded Fund VI - First Trust Nasdaq Food & Beverage ETF ›
Both the State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP) and First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) focus on some of the most popular companies we know today, but in different sectors. This comparison looks at cost, returns, risk, liquidity, and portfolio construction to help investors weigh their options.
Snapshot (cost & size)
| Metric | XLP | FTXG |
|---|---|---|
| Issuer | SPDR | First Trust |
| Expense ratio | 0.08% | 0.60% |
| 1-yr return (as of Feb. 14, 2026) | 11.12% | 6.87% |
| Dividend yield | 2.14% | 2.60% |
| AUM | $17.24 billion | $20.1 million |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
FTXG has a 0.60% expense ratio, which is significantly higher than XLP’s 0.08%. In return, FXTG offers a slightly higher dividend yield.
Performance & risk comparison
| Metric | XLP | FTXG |
|---|---|---|
| Max drawdown (5 y) | (16.31%) | (21.71%) |
| Growth of $1,000 over 5 years | $1,332 | $925 |
What's inside
Nearly a decade since its inception, FTXG tracks a smart beta index focused on U.S. food and beverage companies, with 31 companies in its holdings. Its largest positions are PepsiCo, Inc. (NASDAQ:PEP), Archer-Daniels-Midland Company (NYSE:ADM), and Mondelez International, Inc. (NASDAQ:MDLZ).
Launched all the way back in 1998, XLP remains a consumer defensive staple among ETFs. With 39 holdings and a 27-year track record, its assets under management (AUM) are significantly higher than FTXG’s. Its top holdings include Walmart (NASDAQ:WMT), Costco (NASDAQ:COST), and Procter + Gamble (NYSE:PG).
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
With a lower expense ratio, significantly higher one-year and five-year returns, and a higher dividend payout despite having a lower yield percentage, XLP has simply been established on the market for too long for other consumer staple ETFs like FTXG to compete with it in terms of performance. What may work in FTXG’s favor is that it’s still a relatively younger fund compared to others on the market, so there may be more room for scalability as it continues to structure its portfolio.
What’s interesting about these two funds is their different focuses within the consumer defensive sector. The top holdings in XLP’s portfolio are more retail stores, while FTXG’s weight tends to lean toward food and beverage products. It’s a very niche difference within a relatively broad sector, but it may matter to some.
Regardless of which fund investors choose, both can offer stability during market volatility. Consumer defensive assets are often used as a hedge against economic downturns, mainly because, regardless of the economic condition, consumers still need food, beverages, and other essential goods at all times.
Should you buy stock in First Trust Exchange-Traded Fund VI - First Trust Nasdaq Food & Beverage ETF right now?
Before you buy stock in First Trust Exchange-Traded Fund VI - First Trust Nasdaq Food & Beverage ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and First Trust Exchange-Traded Fund VI - First Trust Nasdaq Food & Beverage ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $414,554!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,120,663!*
Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 15, 2026.
Adé Hennis has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.
Recommended Articles
