What is an ETF and how do FSTA and XLP differ in their basic structure?

An ETF is a basket of assets traded on stock exchanges, combining features of stocks and funds. Both FSTA and XLP are passive ETFs aiming to mimic a consumer staples index. Their main structural difference lies in tracking methodology. FSTA tracks the broad MSCI USA Consumer Staples Index, including a wider selection of firms. XLP tracks the S&P 500 Consumer Staples Sector Index, focusing on the larger companies already part of the S&P 500. This impacts the size range of holdings.

What does expense ratio mean and how does it compare for these two funds?

The expense ratio is the annual fee charged by a fund, deducted from assets. For FSTA and XLP, the provided ground truth states both have an identical expense ratio of 0.08%. This is a key comparison metric because, with identical fees, differences in total return over time may stem from other factors like tracking error, portfolio composition, or trading costs, rather than the explicit fee itself. A 0.08% fee is considered very low for a passive fund.

How do the top 10 holdings of FSTA and XLP demonstrate portfolio overlap?

Both funds share a high degree of overlap in their top holdings, as listed in the FUND DATA. The shared top 10 holdings are WMT, COST, PG, KO, PM, PEP, MO, MDLZ, TGT, and CL. However, the individual weights differ; for example, WMT is a 13.85% weight in FSTA versus 10.54% in XLP. This indicates they hold the same major sector companies, but with different relative emphasis based on their underlying index construction.

What are the differences in inception dates and net assets, and why might they matter?

XLP, launched on Dec 16, 1998, has a much longer track record than FSTA, which started on Oct 21, 2013. XLP also holds substantially more net assets at $13.9 billion compared to FSTA's $1.4 billion. In practice, a larger asset base can lead to tighter bid-ask spreads and more liquidity for traders. A longer history provides more data for analysing how the fund tracks its index over various market conditions.

How do the dividend yields for FSTA and XLP differ and what drives this?

According to the FUND DATA, XLP has a dividend yield of 2.67%, while FSTA yields 2.27%. The difference can be driven by the specific companies held and their individual dividend policies, as well as the fund's income distribution timing. While both funds hold many of the same high-yielding dividend companies, the exact weighting and the inclusion of non-dividend-paying firms can create a gap in the overall fund yield. Yield alone does not indicate future income.

Which types of investing goals are FSTA and XLP commonly associated with?

Both funds are designed for investing in the consumer staples sector, which is typically considered more resilient during economic downturns because people still buy essentials. A neutral description suggests either could fit an income-oriented strategy due to their dividend-paying holdings, or a defensive sector rotation strategy. Investors might compare them based on preferences for broader exposure (MSCI index) versus a more concentrated, large-cap S&P 500 sector exposure (SPDR index), aligning with different risk-return expectations.

What should I understand about ETF distributions before comparing yields?

ETFs like FSTA and XLP typically pay out dividends they receive from their portfolio companies to shareholders, often quarterly. The dividend yield shown (e.g., 2.27% for FSTA) is usually a forward-looking or trailing measure and can change with market prices and dividend announcements. Crucially, distributions are not guaranteed interest; they depend on the dividends paid by the underlying companies. Tax treatment of these distributions also varies and should be understood separately.

Is there a financial advice or disclaimer regarding this comparison?

This information is for educational purposes only and does not constitute financial, tax, or investment advice. Past performance, expense ratios, and dividend yields are not reliable indicators of future results. The provided data is sourced from Yahoo Finance and may contain inaccuracies. You should conduct your own thorough research or consult with a qualified financial advisor before making any investment decisions. All investing involves risk, including the possible loss of principal.

FSTA vs XLP

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Fidelity MSCI Consumer Staples ETF (FSTA) and Consumer Staples Select Sector SPDR (XLP). This page examines their fees, holdings, dividends and how each tracks the market, highlighting that both carry an 0.08% expense ratio. Educational content, not financial advice.

Compare Fidelity MSCI Consumer Staples ETF (FSTA) and Consumer Staples Select Sector SPDR (XLP). This page examines their fees, holdings, dividends and how each tracks the market, highlighting that bo...

Fund Snapshot

Key Fund Metrics

FSTA

Metric

XLP

0.08%

Expense Ratio

0.08%

2.27%

Dividend Yield

2.67%

$1.41B

Net Assets

$13.93B

99

Holdings

37

Oct 21, 2013

Inception Date

Dec 16, 1998

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Index Tracked

–

Consumer Defensive

Fund Category

Consumer Defensive

Both funds charge the same annual fee.

Shared Top Holdings

Holding	FSTA	XLP
WMTWalmart Inc.	13.85%	10.54%
COSTCostco Wholesale Corporation	11.57%	8.80%
PGThe Procter & Gamble Company	9.77%	7.54%
KOThe Coca-Cola Company	9.74%	7.57%
PMPhilip Morris International Inc.	4.69%	6.51%
PEPPepsiCo, Inc.	4.38%	4.24%
MOAltria Group, Inc.	3.88%	4.58%
MDLZMondelez International, Inc.	2.70%	4.36%
TGTTarget Corporation	2.48%	4.49%
CLColgate-Palmolive Company	2.28%	4.44%

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FSTA vs SCHD

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FSTA vs IYK

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Investment Analysis

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XLP

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