Which Consumer Staples ETF Is a Better Buy: Invesco's RSPS or SPDR's XLP?
Key Points
State Street Consumer Staples Select Sector SPDR ETF maintains a significantly lower expense ratio than Invesco S&P 500 Equal Weight Consumer Staples ETF.
State Street Consumer Staples Select Sector SPDR ETF has achieved higher 5-year total returns and a milder maximum drawdown compared to the Invesco fund.
Invesco S&P 500 Equal Weight Consumer Staples ETF uses a balanced weighting approach, while the State Street ETF is highly concentrated in its largest holdings.
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Investors comparing Invesco S&P 500 Equal Weight Consumer Staples ETF and State Street Consumer Staples Select Sector SPDR ETF must weigh the State Street fund's lower costs and market-cap dominance against the Invesco fund's balanced, equal-weighted approach.
Consumer staples offer a defensive cushion during market volatility. While both funds hold 35 of the same large-cap names, they differ fundamentally in weighting. The State Street fund follows the traditional market-cap model, favoring giants like Walmart(NASDAQ:WMT), while the Invesco fund levels the playing field to prevent a few firms from dominating the portfolio.
Snapshot (cost & size)4
| Metric | RSPS | XLP |
|---|---|---|
| Issuer | Invesco | SPDR |
| Share price (as of 2026-08-20) | $31.62 | $85.77 |
| Expense ratio | 0.4% | 0.08% |
| 1-yr return (as of 2026-08-20) | 5.1% | 7.5% |
| Dividend yield | 2.8% | 2.6% |
| Beta | 0.42 | 0.47 |
| AUM | $0.2 billion | $15.3 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The State Street fund is more affordable, with an expense ratio of 0.08% compared to 0.4% for the Invesco fund. In terms of income, the Invesco fund offers a slightly higher distribution yield of 2.8%.
Performance & risk comparison
| Metric | RSPS | XLP |
|---|---|---|
| Max drawdown (5 yr) | (18.6%) | (16.3%) |
| Growth of $1,000 over 5 years (total return) | $1,106 | $1,354 |
What's inside
The State Street Consumer Staples Select Sector SPDR ETF holds 35 securities, with 98% in consumer defensive stocks and 2% in consumer cyclical stocks. Its largest positions include Walmart Inc. at 10.86%, Costco Wholesale Corp. at 9.00%, and Coca-Cola Co. at 7.17%. The fund launched in 1998. It has paid $2.20 per share over the trailing 12 months, which, on its recent ~$86.00 share price, works out to a 2.6% yield.
The Invesco S&P 500 Equal Weight Consumer Staples ETF holds 35 stocks, split between consumer defensive at 97% and consumer cyclical at 3%. Top holdings include Target Corp at 3.49%, Dollar Tree Inc at 0.38%, and General Mills Inc at 3.27%. The fund launched in 2006. It has paid $0.89 per share over the trailing 12 months, which, at its recent ~$31.29 share price, works out to a 2.8% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
The choice here comes down to concentration versus diversification, and the market has rewarded concentration. XLP's cap-weight structure gives Walmart and Costco outsize influence, and that tilt toward the sector's biggest, most efficient operators has driven meaningfully better returns and a smoother ride over five years. RSPS spreads exposure across smaller names like Target and Dollar Tree, avoiding any single company dominating the fund -- but that has meant owning more laggards and fewer winners. Consumer staples investing is fundamentally about stability, and XLP delivers that with lower cost and a longer track record, making it the straightforward pick for defensive exposure. RSPS still has a narrow use case: investors specifically wary of mega-cap concentration, or those wanting a smaller satellite holding alongside a core position rather than as a replacement for it. For most investors looking to build defensive exposure, XLP is the one I'd own.
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Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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