Key Points
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The State Street Consumer Staples Select Sector SPDR ETF (XLP) carries a markedly lower expense ratio than the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS).
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XLP has delivered higher five‑year total returns and a milder maximum drawdown compared with RSPS.
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RSPS employs an equal‑weight methodology, giving each holding similar influence, whereas XLP follows a traditional market‑cap weighting that concentrates assets in the largest companies.
Investors weighing the Invesco S&P 500 Equal Weight Consumer Staples ETF against the State Street Consumer Staples Select Sector SPDR ETF must balance the latter’s cost advantage and market‑cap tilt against the former’s balanced, equal‑weight approach.
Consumer staples tend to provide a defensive buffer during market turbulence. Although both funds hold 35 of the same large‑cap names, their weighting schemes diverge. XLP mirrors a classic market‑cap model, giving outsized weight to giants such as Walmart (NASDAQ:WMT). RSPS, by contrast, equalizes holdings to prevent any single firm from dominating the portfolio.
Snapshot (Cost & Size)
As of August 20 2026, the funds show the following key metrics:
- Share price: RSPS $31.62 ; XLP $85.77
- Expense ratio: RSPS 0.40% ; XLP 0.08%
- 1‑year total return: RSPS 5.1% ; XLP 7.5%
- Dividend yield: RSPS 2.8% ; XLP 2.6%
- Beta (vs. S&P 500): RSPS 0.42 ; XLP 0.47
- Assets under management: RSPS $0.2 billion ; XLP $15.3 billion
Beta measures price volatility relative to the S&P 500, derived from monthly returns over the available history (up to five years). The one‑year return reflects total return over the trailing twelve months, and dividend yield represents the trailing‑12‑month distribution yield.
The State Street fund is more cost‑effective, with an expense ratio of 0.08% versus 0.40% for the Invesco fund. Regarding income, the Invesco ETF offers a marginally higher distribution yield of 2.8%.
Performance & Risk Comparison
- Maximum drawdown (5‑year): RSPS ‑18.6% ; XLP ‑16.3%
- Growth of $1,000 over five years (total return): RSPS ≈ $1,106 ; XLP ≈ $1,354
What’s Inside
The State Street Consumer Staples Select Sector SPDR ETF holds 35 securities, with roughly 98% allocated to consumer defensive stocks and 2% to consumer cyclical stocks. Its largest positions are Walmart Inc. (10.86%), Costco Wholesale Corp. (9.00%), and Coca‑Cola Co. (7.17%). Launched in 1998, the fund has distributed $2.20 per share over the past twelve months; based on its recent price near $86.00, this equates to a 2.6% yield.
The Invesco S&P 500 Equal Weight Consumer Staples ETF also holds 35 stocks, split approximately 97% consumer defensive and 3% consumer cyclical. Top holdings include Target Corp. (3.49%), Dollar Tree Inc. (0.38%), and General Mills Inc. (3.27%). Introduced in 2006, the fund has paid $0.89 per share over the trailing year; at its recent price near $31.29, this works out to a 2.8% yield.
Which Looks Like the Better Buy?
The decision hinges on concentration versus diversification. Market performance has favored the concentrated approach: XLP’s market‑cap weighting gives Walmart and Costco outsized influence, tilting the fund toward the sector’s largest, most efficient operators. This tilt has produced stronger returns and a smoother trajectory over five years. RSPS spreads exposure evenly across smaller names such as Target and Dollar Tree, preventing any single company from dominating the portfolio—but that breadth also brings in more laggards and fewer winners. Because consumer staples investing is fundamentally about stability, XLP delivers that with lower expenses and a longer track record, making it the straightforward choice for defensive exposure. RSPS still serves a niche: investors who are wary of mega‑cap concentration or who desire a smaller satellite holding alongside a core position rather than as a replacement for it. For most investors seeking to build defensive exposure, XLP is the preferable option.
