Launched on December 16, 1998, the Consumer Staples Select Sector SPDR ETF (XLP Quick QuoteXLP - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Staples - Broad segment of the equity market.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 16, placing it in bottom 0%.

Index Details

The fund is sponsored by State Street Investment Management. It has amassed assets over $15.98 billion, making it the largest ETF attempting to match the performance of the Consumer Staples - Broad segment of the equity market. XLP seeks to match the performance of the Consumer Staples Select Sector Index before fees and expenses.

The Consumer Staples Select Sector Index seeks to provide an effective representation of the consumer staples sector of the S&P 500 Index.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.

It has a 12-month trailing dividend yield of 2.52%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Consumer Staples sector -- about 100% of the portfolio.

Looking at individual holdings, Walmart Inc (WMT) accounts for about 9.98% of total assets, followed by Costco Wholesale Corp (COST) and Procter + Gamble Co/the (PG).

The top 10 holdings account for about 60.76% of total assets under management.

Performance and Risk

The ETF has added roughly 2.93% so far this year and is down about 1.98% in the last one year (as of 09/11/2025). In that past 52-week period, it has traded between $76.23 and $84.26.

The ETF has a beta of 0.54 and standard deviation of 12.36% for the trailing three-year period, making it a medium risk choice in the space. With about 41 holdings, it has more concentrated exposure than peers.

Alternatives

Consumer Staples Select Sector SPDR ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, XLP is a sufficient option for those seeking exposure to the Consumer Staples ETFs area of the market. Investors might also want to consider some other ETF options in the space.

Fidelity MSCI Consumer Staples Index ETF (FSTA) tracks MSCI USA IMI Consumer Staples Index and the Vanguard Consumer Staples ETF (VDC) tracks MSCI US Investable Market Consumer Staples 25/50 Index. Fidelity MSCI Consumer Staples Index ETF has $1.33 billion in assets, Vanguard Consumer Staples ETF has $7.46 billion. FSTA has an expense ratio of 0.08%, and VDC charges 0.09%.

Bottom Line

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