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XLP Consumer Staples Select Sector SPDR Fund

Category: Consumer Staples Equities

Inception: 1998-12-16 Issuer: State Street
Net Assets
$16.7B
Expense Ratio
0.08 %
# of Holdings
40
Average Daily Volume
14.72M

Fund Overview

The Consumer Staples Select Sector SPDR Fund (XLP) is an ETF that seeks to provide investment results that correspond generally to the price and yield performance of the Consumer Staples Select Sector Index. This index includes companies from the consumer staples sector, such as food and beverage producers, household and personal product companies, and tobacco firms. XLP offers investors exposure to a broad range of stable, defensive companies that tend to perform well during economic downturns due to consistent consumer demand for essential goods. The fund is one of the largest and most liquid ETFs in the consumer staples sector, making it a popular choice for investors seeking stability and dividends.
Asset Class
Equity
Industry
Broad Consumer Staples
Annual Dividend Rate
Smart Beta
No
Leveraged / Inverse
N/A / No
Dividend Quality - Yield
 - 2.61 %
Currency Hedged
No
Portfolio Turnover
28 %
Dividend Date

Why Invest in the XLP ETF?

Potential Benefits

  • Provides exposure to defensive consumer staples companies that typically perform well during economic downturns.
  • Offers diversification across a broad range of stable, dividend-paying companies.
  • Low expense ratio compared to many actively managed funds in the sector.
  • Highly liquid, with tight bid-ask spreads, making it easy to trade.
  • Historically lower volatility compared to broader market indices.

Potential Risks

  • Sector concentration risk, as the fund is entirely focused on consumer staples.
  • Vulnerable to rising input costs (e.g., commodity prices) that could squeeze profit margins.
  • Regulatory risks, especially for tobacco and alcohol companies within the fund.
  • Potential underperformance during strong bull markets when cyclical sectors outperform.
  • Limited growth potential compared to more dynamic sectors like technology.

Performance

1 Week 1 Month 1 Year 3 Years 5 Years YTD 2025 2024 Since Inception
-0.06% -2.00% +8.51% +33.07% +33.69% +7.32% +1.83% +10.94% +494.48%

Performance


Monthly Returns (%)

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2026 +7.5% +7.8% -8.4% +2.8% -1.7% +0.9% +2.4% -0.1% -4.5% +1.5% - -
2025 +0.5% +5.2% -1.2% +0.2% +1.2% -1.6% -1.5% +1.3% -2.3% -2.7% +4.1% -1.3%
2024 +1.2% +2.1% +3.3% -1.1% +2.4% -0.2% +1.7% +6.0% +1.1% -3.5% +3.9% -4.8%
2023 -1.1% -2.3% +4.2% +3.7% -6.2% +2.8% +2.1% -3.9% -4.8% -1.4% +4.1% +2.7%
2022 -1.5% -1.4% +1.8% +2.3% -4.1% -2.4% +3.2% -1.9% -8.1% +9.0% +6.1% -2.7%
2021 -5.0% -1.2% +8.5% +1.9% +1.8% -0.6% +2.2% +1.0% -4.1% +3.5% -1.3% +10.5%
2020 +0.3% -8.2% -5.5% +7.0% +1.7% -0.2% +6.9% +4.6% -1.7% -2.9% +7.5% +1.7%
2019 +5.1% +1.8% +3.8% +2.9% -3.6% +5.2% +2.3% +2.2% +1.8% -0.4% +1.4% +2.4%
2018 +1.6% -7.6% -0.9% -4.1% -1.6% +4.6% +4.0% +0.4% +1.0% +2.0% +2.3% -8.9%
2017 +1.7% +4.8% -0.4% +1.1% +2.6% -2.2% +0.7% -1.1% -0.7% -1.6% +5.6% +2.2%
< -5% -5% to -2% -2% to 0% 0% 0% to +2% +2% to +5% > +5%

Top Holdings (by weight)

Symbol Company Name Weight
COST COSTCO WHOLESALE CORP 10.2 %
WMT WALMART INC 9.2 %
PG PROCTER & GAMBLE CO 9.1 %
KO COCA-COLA CO 6.4 %
PM PHILIP MORRIS INTERNATIONAL INC 5.6 %
PEP PEPSICO INC 4.8 %
MDLZ MONDELEZ INTERNATIONAL INC CLASS A 4.6 %
CL COLGATE-PALMOLIVE CO 4.5 %
MO ALTRIA GROUP INC 4.4 %
KMB KIMBERLY-CLARK CORP 2.8 %
Top 10 holdings shown, out of 40 total holdings.

Related ETFs: XLP vs Peers

ETF Full Name Expense Ratio Net Assets Holdings Asset Class
ECON Columbia Research Enhanced Emerging Economies ETF 0.49 % $87.1M 203 Equity
FSTA Fidelity MSCI Consumer Staples Index ETF 0.08 % $1.3B 102 Equity
FXG First Trust Consumer Staples AlphaDEX Fund 0.62 % $290.8M 41 Equity
IYK iShares U.S. Consumer Staples ETF 0.40 % $1.5B 58 Equity
KXI iShares Global Consumer Staples ETF 0.41 % $722.9M 98 Equity
PSCC Invesco S&P SmallCap Consumer Staples ETF 0.29 % $46.7M 27 Equity
VDC Vanguard Consumer Staples ETF 0.09 % $8.7B 104 Equity
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.

Investment Strategy

XLP tracks the Consumer Staples Select Sector Index, which is a market-cap-weighted index comprising consumer staples stocks from the S&P 500. The index methodology focuses on companies classified within the consumer staples sector, including food and beverage, household products, and tobacco. The fund holds all (or a representative sample) of the securities in the index and is rebalanced quarterly to maintain alignment with the index. XLP primarily holds common stocks of large-cap U.S. consumer staples companies, providing direct exposure to the sector.

Frequently Asked Questions

What types of companies are included in XLP?

XLP includes large-cap U.S. companies in the consumer staples sector, such as food and beverage producers, household product manufacturers, and tobacco firms.

Is XLP a good ETF for dividend investors?

Yes, XLP is known for its dividend-paying constituents, making it attractive for income-focused investors.

How does XLP perform during recessions?

XLP tends to outperform broader markets during recessions due to the defensive nature of consumer staples companies, which sell essential goods.

What is XLP's expense ratio?

XLP has a low expense ratio of 0.10%, making it one of the most cost-efficient ways to invest in the consumer staples sector.

Industry Overview

The Consumer Staples Select Sector SPDR Fund (XLP) provides exposure to the consumer staples sector, which includes companies that produce essential goods such as food, beverages, household products, and tobacco. This sector is known for its defensive characteristics, as demand for these products remains relatively stable regardless of economic conditions. Investing in XLP allows investors to gain diversified exposure to well-established companies with strong cash flows and consistent dividends. The fund is particularly appealing during periods of economic uncertainty or market volatility, as consumer staples stocks tend to outperform more cyclical sectors.

Alternative Comparison

Compared to Vanguard's Consumer Staples ETF (VDC), XLP offers a slightly lower expense ratio (0.10% vs. 0.10% for VDC) and greater liquidity. However, VDC includes mid-cap stocks, providing broader sector exposure. Another peer, iShares U.S. Consumer Staples ETF (IYK), tracks a broader index that includes some non-S&P 500 stocks, resulting in slightly different sector weightings. XLP's focus on large-cap S&P 500 consumer staples companies makes it a pure play on the sector's most stable and liquid names.

Issuer Overview

XLP is issued by State Street Global Advisors (SSGA), one of the largest ETF providers in the world. SSGA is known for its SPDR ETF family, which includes sector-specific and broad-market funds. The firm has a strong reputation for low-cost, passive investment strategies and is a leader in index-based ETFs.

Conclusion

XLP is a well-established ETF that provides investors with cost-effective exposure to the defensive consumer staples sector. Its focus on large-cap, dividend-paying companies makes it a suitable choice for those seeking stability and income, particularly during market downturns. While it may underperform in strong bull markets, its defensive characteristics and low expense ratio make it a compelling long-term holding for diversified portfolios.

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