Which Consumer Staples ETF Is a Better Buy: Invesco's RSPS or SPDR's XLP?

Seena Hassouna, The Motley Fool

Sat, August 22, 2026 at 9:05 PM GMT+3 4 min read

IVZ +2.10%

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

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

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.

Should you buy stock in Select Sector SPDR Trust - State Street Consumer Staples Select Sector SPDR ETF right now?

Before you buy stock in Select Sector SPDR Trust - State Street Consumer Staples Select Sector SPDR 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 Select Sector SPDR Trust - State Street Consumer Staples Select Sector SPDR ETF wasn't one of them. The 10 stocks that made the cut are built for long-term growth and 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 $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,318,055!*

That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.

See the 10 stocks »

*Stock Advisor returns as of August 22, 2026.

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.

Which Consumer Staples ETF Is a Better Buy: Invesco's RSPS or SPDR's XLP? was originally published by The Motley Fool