What is the fee difference between VDC and XLP?

VDC charges 0.09% a year and XLP charges 0.08%. On a $10,000 investment that is about $9 for VDC and $8 for XLP, so roughly $1 a year separates them. With costs this close, the number of holdings and the dividend yield are the more meaningful differences.

What index does each fund track?

VDC tracks the MSCI US IMI 25/50 Consumer Staples index, which covers large, mid and small US companies in food, beverages, household products, tobacco and staples retail, for 108 holdings. XLP tracks the S&P Consumer Staples Select Sector index, the staples companies within the S&P 500, for 38 holdings.

How much do VDC and XLP overlap?

The same 10 companies top both funds: Walmart, Costco, Coca-Cola, Procter & Gamble, Philip Morris, PepsiCo, Altria, Mondelez, Target and Colgate-Palmolive. Weights differ: Walmart is 13.34% of VDC but 10.16% of XLP, and Costco is 11.99% against 8.61%. VDC then adds 70 smaller companies XLP does not hold.

Which pays a higher dividend?

XLP, at 2.68% against 2.15% for VDC. The gap is partly because VDC's index gives heavier weights to Walmart and Costco, two lower-yielding retailers, while XLP spreads more weight across tobacco and household product companies that pay larger dividends. Yields move with prices and payouts.

Which fund suits which goal?

VDC suits investors who want the whole US consumer staples sector, including smaller companies, in one fund. XLP suits investors who want the large, well-known staples names with a higher yield and a bigger, more heavily traded fund. Both are defensive sector holdings rather than growth positions.

Which is bigger and more liquid?

XLP is larger, with $13.93 billion in net assets against $7.76 billion for VDC. Both are big enough for retail investors to trade easily. XLP is part of the widely used Select Sector SPDR family, which generally brings higher daily trading volumes.

How are dividends from VDC and XLP taxed?

Both are US-listed ETFs, so non-US investors may face US withholding tax on dividends at their country's treaty rate. Capital gains follow local rules. Since XLP yields more than VDC, a slightly larger share of its return arrives as taxable income each year. Account type matters, so check local guidance.

Can I hold both VDC and XLP?

You can, but the funds are close substitutes. They share the same top 10 holdings and the same sector, so owning both mostly duplicates exposure while paying two fees. Investors who want the extra small and mid caps usually pick VDC; those who want the higher yield pick XLP.

Why is VDC more concentrated in Walmart and Costco than XLP?

Both funds weight stocks by market value, but VDC's index includes 108 companies, most of them small, while XLP's 38 names are all large. In VDC the two retail giants stand out more against a long tail of small holdings, so Walmart and Costco together reach about 25% of VDC compared with about 19% of XLP.

VDC vs XLP

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

VDC and XLP both hold US consumer staples and share the same 10 largest positions, including Walmart, Costco and Coca-Cola. VDC tracks the MSCI US IMI 25/50 Consumer Staples index with 108 stocks for 0.09% a year and yields 2.15%. XLP tracks the S&P Consumer Staples Select Sector index with 38 stocks for 0.08% and yields 2.68%. Educational content, not financial advice.

VDC and XLP both hold US consumer staples and share the same 10 largest positions, including Walmart, Costco and Coca-Cola. VDC tracks the MSCI US IMI 25/50 Consumer Staples index with 108 stocks for ...

Fund Snapshot

Key Fund Metrics

VDC

Metric

XLP

0.09%

Expense Ratio

0.08%

2.15%

Dividend Yield

2.68%

$7.76B

Net Assets

$13.93B

108

Holdings

38

Jan 26, 2004

Inception Date

Dec 16, 1998

MSCI US IMI 25/50 Consumer Staples

Index Tracked

S&P Consumer Staples Select Sector

Consumer Defensive

Fund Category

Consumer Defensive

XLP costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	VDC	XLP
WMTWalmart Inc.	13.34%	10.16%
COSTCostco Wholesale Corporation	11.99%	8.61%
KOThe Coca-Cola Company	9.63%	7.40%
PGThe Procter & Gamble Company	9.43%	7.46%
PMPhilip Morris International Inc.	4.53%	6.44%
PEPPepsiCo, Inc.	4.52%	4.26%
MOAltria Group, Inc.	3.74%	4.38%
MDLZMondelez International, Inc.	2.65%	4.44%
TGTTarget Corporation	2.44%	4.70%
CLColgate-Palmolive Company	2.29%	4.48%

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Investment Analysis

VDC

Pros

Holds 108 consumer staples stocks, nearly three times as many as XLP.
Includes mid and small caps that XLP's S&P 500-only index leaves out.
Low 0.09% expense ratio and a track record back to January 2004.

Considerations

Walmart at 13.34% and Costco at 11.99% together make up about a quarter of the fund.
Dividend yield of 2.15% is noticeably lower than XLP's 2.68%.
Smaller fund at $7.76 billion in net assets versus $13.93 billion for XLP.

XLP

Pros

Expense ratio of 0.08%, or $8 a year per $10,000, slightly below VDC.
Higher dividend yield at 2.68% compared with 2.15% for VDC.
Larger and older fund with $13.93 billion in assets, trading since 1998.

Considerations

Only 38 holdings, limited to consumer staples companies in the S&P 500.
Top holding Walmart is 10.16% and the top four are about 34% of the fund.
No exposure to smaller staples businesses outside the S&P 500.

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