State Street or iShares: Which Consumer Staples ETF Offers Better Value?

The consumer staples sector is often viewed as a "safe haven" during periods of market turbulence because it includes companies that provide essential products like groceries and cleaning supplies. This comparison examines two of the most popular vehicles for this strategy, weighing the $13.6 billion in assets under management (AUM) of the State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP) against the $1.3 billion AUM and broader industry scope of the iShares U.S. Consumer Staples ETF (NYSEMKT:IYK). Both ETFs offer a way to dial down volatility in a diversified portfolio.Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.A 0.30 percentage point difference in expense ratios might seem small at first glance, but it significantly impacts long-term capital accumulation when compounded over decades. The lower fee structure of the State Street fund allows more of the underlying investment gains to remain in the investor's account over time.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool