RSPS and XLP Offer Distinct Approaches to the Consumer Staples Sector. Which Is the Better Buy?

Explore how different weighting strategies in these consumer staples ETFs can impact diversification and sector exposure.The State Street Consumer Staples Select Sector SPDR ETF (XLP +0.34%) and the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS +0.17%) both target the U.S. consumer staples sector, but they use different portfolio construction methods. This comparison looks at cost, returns, risk, portfolio makeup, and trading characteristics to help investors decide which approach may align better with their goals.Snapshot (cost & size)MetricXLPRSPSIssuerSPDRInvescoExpense ratio0.08%0.40%1-yr return (as of Feb. 14, 2026)9.94%11.75%Dividend yield2.56%2.63%Beta (5Y monthly)0.600.61AUM$16 billion$250 millionBeta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.RSPS is more expensive than XLP on fees, with an expense ratio of 0.40% compared to XLP’s 0.08%. Both funds offer roughly the same dividend yield, so payout potential is comparable despite the cost difference.Performance & risk comparisonMetricXLPRSPSMax drawdown (5 y)-16.32%-18.61%Growth of $1,000 over 5 years$1,363$1,095What's insideRSPS provides exposure to the same consumer defensive sector as XLP, but it assigns equal weight to each of its 36 holdings and rebalances quarterly. This means smaller companies have a similar influence to the sector giants. The fund has been operating for over 19 years, making it seasoned in the space.In contrast, XLP tracks a market-cap-weighted index, so its largest holdings — Walmart, Costco Wholesale, and Procter & Gamble — dominate the portfolio. Both funds are fully dedicated to the consumer defensive sector, but XLP’s heavier tilt toward mega-cap companies results in greater liquidity and scale. RSPS, while smaller, provides more balanced exposure across the industry’s players.For more guidance on ETF investing, check out the full guide at this link.What this means for investorsWhile XLP and RSPS target the same sector and contain many of the same holdings, their different approaches may appeal to different investors.RSPS’s equal-weighted strategy means that every stock, regardless of size, is given roughly the same allocation within the portfolio. XLP, on the other hand, allocates by market cap — so larger companies make up a larger proportion of the portfolio.Both approaches can have benefits and drawbacks. An equal-weight approach can help limit single-stock risk, because each holding is on roughly the same footing. At the same time, though, that can limit its earnings, as high performers are given the same weight as stocks earning below-average returns.The right choice for you will depend mostly on how much exposure you’re seeking to major players in the industry. XLP’s top three holdings account for a combined 28% of its portfolio, compared to 9.5% for RSPS.If you’re looking for greater access to industry leaders, XLP’s market-cap-weighted approach may be a better fit. Those seeking to reduce single-stock risk and invest in all holdings at roughly equal weights, however, might prefer RSPS.Read NextFeb 14, 2026 •By John BallardFSTA Offers Lower Fees While RSPS Pays Higher DividendsFeb 14, 2026 •By Robert IzquierdoBetter Consumer Staples ETF: Vanguard's VDC vs. Invesco's RSPSFeb 11, 2026 •By Katie BrockmanFSTA vs. RSPS: Which Consumer Staples ETF Is the Better Buy Right Now?Feb 11, 2026 •By Dave KovaleskiWhich Invesco Defensive ETF is the Better Buy?Feb 11, 2026 •By Josh Kohn-LindquistInvesco (RSPS) vs. First Trust (FTXG): Which Consumer Staples ETF Is the Better Buy?Feb 8, 2026 •By Katie BrockmanConsumer Staples Showdown: Is FSTA or RSPS the Better Buy Right Now?About 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 MentionedInvesco Exchange-Traded Fund Trust - Invesco S&P 500 Equal Weight Consumer Staples ETFNYSEMKT: RSPS$33.09 (+0.17%) $+0.06Select Sector SPDR Trust - State Street Consumer Staples Select Sector SPDR ETFNYSEMKT: XLP$89.51 (+0.34%) $+0.30*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.