VDC vs. RSPS: Broad Diversification or Balanced Bets for Consumer Staples Investors?

1 week ago 11

Sara Appino, The Motley Fool

Sun, January 4, 2026 astatine 3:20 PM CST 5 min read

VDC charges a overmuch little disbursal ratio and holds implicit 100 stocks, portion RSPS is pricier and much concentrated.
VDC has delivered somewhat amended one-year returns, with a narrower humanities drawdown.
Both funds absorption connected user staples, but RSPS arsenic weights holdings portion VDC is market-cap weighted, starring to antithetic apical holdings and assemblage tilts.
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The Vanguard Consumer Staples ETF (NYSEMKT:VDC) offers little costs, broader diversification, and somewhat stronger caller performance, portion the Invesco S&P 500 Equal Weight Consumer Staples ETF (NYSEMKT:RSPS) takes a much concentrated, equal-weighted attack wrong the sector.

Both VDC and RSPS supply vulnerability to U.S. user staples stocks, appealing to investors seeking antiaircraft assemblage coverage. VDC tracks a wide market-cap-weighted index, portion RSPS uses an equal-weighted strategy focused connected S&P 500 constituents. Here is however they comparison crossed cost, risk, performance, and portfolio makeup.

Metric

RSPS

VDC

Issuer	Invesco	Vanguard
Expense ratio	0.40%	0.09%
1-yr instrumentality (as of Dec. 17, 2025)	(3.2%)	0.05%
Dividend yield	2.7%	2.2%
Beta	0.52	0.56
AUM	$236.2 million	$8.6 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VDC is much affordable, with an disbursal ratio of 0.09% compared to 0.40% for RSPS, portion RSPS offers a somewhat higher dividend output astatine 2.7% versus 2.2% for VDC.

Metric

RSPS

VDC

Max drawdown (5 y)	(18.64%)	(16.55%)
Growth of $1,000 implicit 5 years	$988	$1,244

VDC holds 105 stocks and tracks the broader user staples sector, with a portfolio that is 98% user defensive, 1% user cyclical, and a negligible portion of industrials. Its largest positions are Walmart (NASDAQ:WMT) astatine 14.53%, Costco Wholesale (NASDAQ:COST) astatine 12.00%, and The Procter & Gamble (NYSE:PG) astatine 10.09%. The money has a agelong way grounds astatine 21.9 years and pays dividends quarterly, with the astir caller ex-dividend day connected Dec. 17, 2025.

RSPS, by contrast, is strictly focused connected user antiaircraft stocks wrong the S&P 500 and weights each holding equally, resulting successful 37 positions. Top names see Dollar General (NYSE:DG) astatine 3.52% and Monster Beverage (NASDAQ:MNST) astatine 3.34% of the fund. This equal-weighting tin supply much vulnerability to mid-sized companies, but with little diversification than VDC.

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