The XLP ETF Offers Lower Fees and a Larger Size Than the IYK ETF

1 day ago 6

Cory Renauer, The Motley Fool

Sat, January 3, 2026 astatine 12:40 PM CST 5 min read

XLP charges a overmuch little disbursal ratio and manages implicit 10 times the assets of IYK
Both funds output 2.7% and absorption connected U.S. user staples, but XLP is much concentrated and pure-play successful assemblage exposure
IYK has somewhat outperformed XLP implicit the past twelvemonth and 5 years, with a shallower max drawdown
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The State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP) stands retired for its overmuch little fees, deeper assemblage focus, and acold greater assets nether absorption than the iShares US Consumer Staples ETF (NYSEMKT:IYK), portion IYK has delivered modestly stronger caller returns and shallower max drawdown.

Both XLP and IYK question to supply investors with vulnerability to U.S. user staples stocks, a assemblage known for antiaircraft qualities and dependable dividends. This examination looks astatine cost, returns, risk, holdings, and operation to assistance investors recognize the cardinal differences betwixt 2 of the astir salient choices successful the space.

Metric

IYK

XLP

Issuer	IShares	SPDR
Expense ratio	0.38%	0.08%
1-yr instrumentality (as of 2025-12-26)	1.7%	(1.8%)
Dividend yield	2.7%	2.7%
AUM	$1.2 billion	$14.7 billion

The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

XLP is importantly much affordable astatine 0.08% successful yearly expenses, portion IYK charges 0.38%. Both funds presently connection a 2.7% dividend yield, truthful outgo savings whitethorn beryllium the deciding origin for fee-sensitive investors.

Metric

IYK

XLP

Max drawdown (5 y)	(15.04%)	(16.31%)
Growth of $1,000 implicit 5 years	$1,178	$1,163

XLP holds 36 stocks and delivers pure-play vulnerability to U.S. user antiaircraft companies, with each assets successful that sector. Its largest positions arsenic of precocious December 2025 are Walmart (NASDAQ:WMT), Costco (NASDAQ:COST), and Procter & Gamble (NYSE:PG), unneurotic accounting for implicit a 4th of the portfolio. The money has a agelong way grounds astatine 27.0 years, and its absorption connected the Consumer Staples Select Sector Index means holdings are concentrated successful household products, food, beverage, and retail giants.

IYK, by contrast, holds 54 stocks and has a somewhat broader assemblage allocation: 85% successful user defensive, 12% successful healthcare, and 2% successful basal materials. Its apical holdings are Procter & Gamble, Coca-Cola (NYSE:KO), and Philip Morris International(NYSE:PM), providing much vulnerability to baccy and beverage companies. IYK's broader scope whitethorn entreaty to those seeking a spot much diversification wrong consumer-related industries.

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