IYK vs. XLP: How These Consumer Staples ETFs Compare on Risk, Returns, and Fees

By Katie Brockman – Apr 2, 2026 at 7:15PM ESTKey PointsIYK charges a higher expense ratio than XLP, while both offer roughly the same dividend yield.IYK holds more stocks and adds modest exposure to healthcare and basic materials, while XLP sticks strictly to consumer staples.XLP is much larger by assets under management and has slightly outperformed IYK over the past five years.The State Street Consumer Staples Select Sector SPDR ETF (XLP +0.53%) and the iShares U.S. Consumer Staples ETF (IYK +0.55%) both aim to track U.S. companies in the consumer staples space, appealing to investors seeking defensive exposure. This comparison compares these ETFs on cost, yield, performance, holdings, and risk, helping investors determine the right option for their portfolio.Snapshot (cost & size)MetricXLPIYKIssuerSPDRiSharesExpense ratio0.08%0.38%1-yr return (as of April 2, 2026)3.35%-0.23%Dividend yield2.38%2.37%Beta (5Y monthly)0.590.50Assets under management (AUM)$17.6 billion$1.3 billionBeta 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.While these two funds deliver nearly identical dividend yields, XLP is notably more affordable with a 0.08% expense ratio compared to IYK’s 0.38% fee, which could add up over time.Performance & risk comparisonMetricXLPIYKMax drawdown (5Y)-16.32%-15.04%Growth of $1,000 over five years (total returns)$1,366$1,331What's insideIYK holds 54 stocks and tracks the broad U.S. consumer staples sector, but with a twist: 85% of assets are in consumer defensive companies, along with roughly 11% in healthcare and 2% in basic materials. The largest positions are Procter & Gamble, Coca-Cola, and Philip Morris International. This broader approach means investors get a touch of healthcare and materials exposure beyond pure staples.By contrast, XLP is tightly focused on consumer defensive companies, with 100% of assets in the sector. It holds just 35 stocks, and its top holdings are Walmart, Costco Wholesale, and Procter & Gamble, making it a more concentrated play on traditional staples. Both funds avoid leverage, currency hedging, or other structural quirks.For more guidance on ETF investing, check out the full guide at this link.What this means for investorsA consumer defensive ETF can be a smart investment during periods of market uncertainty, as these stocks often provide stability regardless of general economic conditions.Both IYK and XLP offer concentrated exposure to this sector, but XLP is narrower in terms of its number of holdings and sector allocations. IYK provides slightly more diversification, branching outside of consumer defensive with some healthcare stocks and holding around 20 more stocks than XLP.Greater diversification can help limit risk. IYK boasts a slightly lower beta and a marginally lower five-year maximum drawdown, suggesting it has experienced lower volatility over the last five years.Sometimes, though, a more targeted approach can lead to higher total returns. XLP has outperformed IYK in both one- and five-year total returns, which can give it an edge for investors seeking greater earning potential.Finally, fees are a factor to consider when deciding between these two funds. IYK charges a much higher expense ratio of 0.38% compared to XLP’s 0.08%. In other words, investors will pay $38 in fees per $10,000 invested in IYK, or $8 per $10,000 in XLP. Over time, that difference could amount to thousands of dollars in fees.Read NextApr 2, 2026 •By Seena HassounaVDC vs. IYK: Vanguard's Structural Advantage and IYK's Defensive TwistMar 27, 2026 •By Robert IzquierdoWhich Is the Better Consumer Staples ETF: Fidelity's FSTA or iShares' IYK?Mar 26, 2026 •By Jake LerchConsumer Staples Stocks: IYK Offers Broader Holdings While PBJ Focuses on FoodMar 26, 2026 •By Josh Kohn-LindquistInvesco (RSPS) vs. iShares (IYK): Which Consumer Staples ETF Is Better for Investors?Apr 2, 2026 •By Seena HassounaGDX vs. SGDM: A $27 Billion Size Gap and a Concentration Difference Worth NotingAbout the AuthorKatie Brockman is a contributing writer at The Motley Fool covering retirement, Social Security, and investing fundamentals. Prior to The Motley Fool, Katie held various writing and editing roles at companies ranging from small start-ups to multimillion-dollar brands. Her work has appeared in USA Today, Inc magazine, and other authoritative media outlets. She holds a bachelor’s degree in business administration and management from Illinois Wesleyan University.TMFKatieBrockmanStocks MentionediShares Trust - iShares U.s. Consumer Staples ETFNYSEMKT: IYK$69.95(+0.55%)+$0.38Select Sector SPDR Trust - State Street Consumer Staples Select Sector SPDR ETFNYSEMKT: XLP$81.89(+0.53%)+$0.43*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.