When it comes to low-risk investing strategies, consumer staples ETFs are a popular option.
Companies that manufacture or sell essential goods like packaged foods, beverages and household products tend to generate steady sales regardless of broader economic conditions. The best consumer staples stocks also tend to be adept at adjusting prices based on input costs to pass those prices on to consumers and protect the bottom line.
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Exchange-traded funds that hold dozens of leading companies offer a simple, cost-effective way to gain exposure to the sector and further reduce your risk profile. The best consumer staples ETFs are one-stop shops that carry the biggest names in one single position.
The following seven ETFs are established options, each with more than $200 million in assets under management.
| ETF | Expense ratio | Assets under management |
| Consumer Staples Select Sector SPDR Fund (ticker: XLP) | 0.08% | $16.2 billion |
| Vanguard Consumer Staples ETF (VDC) | 0.09% | $8.4 billion |
| Fidelity MSCI Consumer Staples Index ETF (FSTA) | 0.08% | $1.5 billion |
| iShares U.S. Consumer Staples ETF (IYK) | 0.38% | $1.3 billion |
| iShares Global Consumer Staples ETF (KXI) | 0.39% | $1 billion |
| Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS) | 0.40% | $266 million |
| First Trust Consumer Staples AlphaDEX Fund (FXG) | 0.63% | $239 million |
Consumer Staples Select Sector SPDR Fund (XLP)
The largest consumer staples ETF available to U.S. investors, XLP holds roughly 40 of the sector’s biggest brands. Top holdings include Walmart Inc. (WMT), Costco Wholesale Corp. (COST) and Procter & Gamble Co. (PG). With an average market capitalization of more than $130 billion across its holdings, XLP focuses squarely on the largest and most established companies in the consumer staples universe. While not a huge number of companies are in this fund, keep in mind this list covers the entirety of staples stocks in the S&P 500. The sector is just 5% of the broader index, after all.
Vanguard Consumer Staples ETF (VDC)
VDC is another respected option, offering a bit broader diversification through its portfolio of more than 100 holdings. Though wider in reach, the top holdings are very similar to the prior fund because this Vanguard ETF is weighted by market value — so trillion-dollar retailer Walmart makes up about 15% of the portfolio, followed by other familiar leaders in the sector.
Fidelity MSCI Consumer Staples Index ETF (FSTA)
FSTA looks similar to prior options, with about 90 holdings dominated by megacap companies and about two-thirds of all assets allocated to the top 10 positions. Because of these similarities, if you’re a particular fan of Fidelity funds and its brokerage, you may want to consider this ETF for the commission-free potential offered by this asset manager and its namesake funds.
iShares U.S. Consumer Staples ETF (IYK)
IYK takes a slightly more concentrated and curated approach, with about 55 companies in the fund. It eliminates stocks in the sector that are retailers and instead focuses on goods-producing companies such as Procter & Gamble Co. (PG), Coca-Cola Co. (KO) and Philip Morris International Inc. (PM). This gives a much more direct play on the staples themselves rather than storefronts. Keep in mind that it’s a bit pricier than the other funds, with a 0.38% expense ratio.
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iShares Global Consumer Staples ETF (KXI)
For investors seeking international exposure, KXI tracks the largest consumer staples companies worldwide. About 60% of assets remain in dominant U.S. firms, but the rest of the portfolio is allocated to major multinational companies in developed markets like Switzerland’s Nestlé SA (NESN.SW) and U.K.-based Unilever PLC (UL). The fund offers a convenient way to diversify geographically across roughly 115 global consumer staples leaders.
Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS)
The list of holdings in RSPS is identical to the first fund on this list in that it only holds staples stocks in the S&P 500 index. Unlike traditional market cap-weighted funds, this fund assigns equal weight to each company. That means smaller companies receive the same allocation as giants like Walmart, with a target of about 3% across the 30 or so stocks. The fund regularly rebalances to maintain this structure, offering broad diversification across the sector. While smaller from an asset perspective and a bit more expensive, RSPS is truly the most diversified fund of the bunch.
First Trust Consumer Staples AlphaDEX Fund (FXG)
FXG is the most expensive fund listed here, but it takes a more complex approach by selecting stocks using a quantitative model rather than simple index weighting. The strategy evaluates metrics such as price momentum, sales growth and return on assets to identify promising companies. The portfolio typically holds about 40 stocks, including names like agribusiness leader Bunge Global SA (BG) and medical supplies firm McKesson Corp. (MCK) that are currently at the top of the list. The lineup is less traditional than many large-cap staples ETFs, which can mean higher volatility — but also the potential for better performance if the strategy succeeds.
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7 Best Consumer Staples ETFs originally appeared on usnews.com
Update 03/18/26: This story was published at an earlier date and has been updated with more information.
