Comparison of Consumer Staples ETFs: XLP vs IYK
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22h ago
0mins
Source: Fool
- Cost Comparison: State Street's XLP offers a significantly lower expense ratio of 0.08% compared to iShares' IYK at 0.38%, which means that for the same returns, XLP can provide higher net returns for long-term cost-conscious investors.
- Portfolio Composition: XLP focuses exclusively on 36 consumer staples stocks without including healthcare or basic materials, while IYK holds 54 stocks, with 85% in consumer defensive and 11% in healthcare, indicating that IYK's diversified strategy may appeal to investors seeking broader exposure.
- Returns and Risks: Over the past year, XLP delivered a return of 9.9% compared to IYK's 11.3%, and while IYK's returns are slightly higher, XLP's maximum drawdown of 16.31% indicates a higher risk profile during market volatility.
- Market Performance: XLP's top holdings include Walmart and Costco, providing a strong retail foundation, whereas IYK leans more towards product manufacturers, offering investors a defensive investment option in healthcare despite its higher fees.
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Analyst Views on PG
Wall Street analysts forecast PG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PG is 164.50 USD with a low forecast of 150.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
10 Buy
7 Hold
0 Sell
Moderate Buy
Current: 158.610
Low
150.00
Averages
164.50
High
180.00
Current: 158.610
Low
150.00
Averages
164.50
High
180.00
About PG
The Procter & Gamble Company is focused on providing branded consumer packaged goods to consumers across the world. The Company’s segments include Beauty, Grooming, Health Care, Fabric & Home Care and Baby, Feminine & Family Care. The Company’s products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. It also sells direct to individual consumers. It has operations in approximately 70 countries. It offers products under brands, such as Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, Secret, SK-II, Braun, Gillette, Venus, Crest, Oral-B, Ariel, Downy, Gain, Tide, Always, Always Discreet, Tampax, Bounty and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Comparison of Consumer Staples ETFs: XLP vs IYK
- Cost Comparison: State Street's XLP offers a significantly lower expense ratio of 0.08% compared to iShares' IYK at 0.38%, which means that for the same returns, XLP can provide higher net returns for long-term cost-conscious investors.
- Portfolio Composition: XLP focuses exclusively on 36 consumer staples stocks without including healthcare or basic materials, while IYK holds 54 stocks, with 85% in consumer defensive and 11% in healthcare, indicating that IYK's diversified strategy may appeal to investors seeking broader exposure.
- Returns and Risks: Over the past year, XLP delivered a return of 9.9% compared to IYK's 11.3%, and while IYK's returns are slightly higher, XLP's maximum drawdown of 16.31% indicates a higher risk profile during market volatility.
- Market Performance: XLP's top holdings include Walmart and Costco, providing a strong retail foundation, whereas IYK leans more towards product manufacturers, offering investors a defensive investment option in healthcare despite its higher fees.
See More
Comparison Analysis of Consumer Staples ETFs
- Cost and Yield Comparison: Vanguard Consumer Staples ETF (VDC) charges an annual fee of just 0.09%, significantly lower than Invesco Food & Beverage ETF (PBJ) at 0.61%, while VDC also offers a higher dividend yield of 2.1% compared to PBJ's 1.7%, making VDC more appealing for income-focused investors.
- Portfolio Composition Differences: VDC encompasses over 100 consumer stocks, with 98% in consumer defensive, whereas PBJ focuses on 31 food and beverage companies, including Sysco and Corteva, which may increase specific company risk due to its concentrated investments.
- Market Performance and Risk: Over the past year, VDC achieved a return of 4.6%, while PBJ only managed 1.2%, and VDC's maximum drawdown of 16.55% is lower than PBJ's 15.84%, indicating VDC's relative stability amid market volatility.
- Investment Strategy Choices: As a pure index fund, VDC provides comprehensive defensive exposure to consumer staples, while PBJ employs quantitative analysis for a concentrated portfolio, charging nearly seven times the fees of VDC, yet recent performance suggests this may not justify the cost, prompting investors to choose wisely.
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- CVS Health Earnings Outlook: CVS Health is set to report quarterly results on Tuesday, and despite being affected by the Trump administration's proposed reimbursement rates for Medicare Advantage, Cramer believes CEO David Joyner's management is impressive and the stock is worth owning.
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- Earnings Reports Ahead: Several companies, including CVS Health, Robinhood, and DuPont, are set to report earnings next week; Cramer believes CVS is the only drug retailer worth owning amid Medicare reform, showcasing its competitive edge in the market.
- DuPont's Strong Performance: Cramer anticipates that DuPont's earnings report will highlight CEO Lori Koch's effective management, particularly after the spinoff of its electronics business, with the stock soaring 58% over the past six months, indicating the success of the company's restructuring.
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- Tech Stock Influence: This milestone was largely driven by strong performances from technology stocks, particularly Nvidia's replacement of Intel, highlighting the market's heightened focus and investment enthusiasm in the artificial intelligence sector.
- Market Rebound: Following a downturn in 2022, the Dow rebounded nearly 13% in 2023, with this breakthrough occurring against the backdrop of the index climbing over 1,100 points, demonstrating a robust market recovery.
- Changing Economic Landscape: Despite concerns over Trump's tariff policies and the impact of AI spending, the market has shown resilience, indicating investor optimism regarding future economic growth.
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- Amazon Stock Decline: Despite the overall rise in Dow components, Amazon's stock fell 7.5% due to massive spending plans and weaker-than-expected guidance revealed in Thursday's earnings report, impacting investor confidence.
- Eli Lilly Share Recovery: Eli Lilly shares bounced back 3% on Friday after an almost 8% drop, as the FDA announced actions against illegal copycat drugs, which bolstered market confidence in Lilly's growth potential.
- Linde Rating Downgrade: Following a 2.9% decline post-earnings on Thursday, Linde shares dropped another 1.7% on Friday after JPMorgan downgraded its rating to hold, although Jim Cramer maintained a buy rating and raised the price target to $510.
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Comparison of Consumer Staples ETFs: XLP vs IYK
- Cost Comparison: State Street's XLP offers a significantly lower expense ratio of 0.08% compared to iShares' IYK at 0.38%, which means that for the same returns, XLP can provide higher net returns for long-term cost-conscious investors.
- Portfolio Composition: XLP focuses exclusively on 36 consumer staples stocks without including healthcare or basic materials, while IYK holds 54 stocks, with 85% in consumer defensive and 11% in healthcare, indicating that IYK's diversified strategy may appeal to investors seeking broader exposure.
- Returns and Risks: Over the past year, XLP delivered a return of 9.9% compared to IYK's 11.3%, and while IYK's returns are slightly higher, XLP's maximum drawdown of 16.31% indicates a higher risk profile during market volatility.
- Market Performance: XLP's top holdings include Walmart and Costco, providing a strong retail foundation, whereas IYK leans more towards product manufacturers, offering investors a defensive investment option in healthcare despite its higher fees.
See More
Comparison Analysis of Consumer Staples ETFs
- Cost and Yield Comparison: Vanguard Consumer Staples ETF (VDC) charges an annual fee of just 0.09%, significantly lower than Invesco Food & Beverage ETF (PBJ) at 0.61%, while VDC also offers a higher dividend yield of 2.1% compared to PBJ's 1.7%, making VDC more appealing for income-focused investors.
- Portfolio Composition Differences: VDC encompasses over 100 consumer stocks, with 98% in consumer defensive, whereas PBJ focuses on 31 food and beverage companies, including Sysco and Corteva, which may increase specific company risk due to its concentrated investments.
- Market Performance and Risk: Over the past year, VDC achieved a return of 4.6%, while PBJ only managed 1.2%, and VDC's maximum drawdown of 16.55% is lower than PBJ's 15.84%, indicating VDC's relative stability amid market volatility.
- Investment Strategy Choices: As a pure index fund, VDC provides comprehensive defensive exposure to consumer staples, while PBJ employs quantitative analysis for a concentrated portfolio, charging nearly seven times the fees of VDC, yet recent performance suggests this may not justify the cost, prompting investors to choose wisely.
See More
Investors Nervous About Robinhood's Bitcoin Correlation
- Labor Data Impact: The upcoming nonfarm payroll report on Wednesday is expected to show an addition of 80,000 jobs, and if the data comes in weak, it could lead the Fed to continue cutting rates, which would positively impact the stock market, reflecting concerns about economic slowdown.
- CVS Health Earnings Outlook: CVS Health is set to report quarterly results on Tuesday, and despite being affected by the Trump administration's proposed reimbursement rates for Medicare Advantage, Cramer believes CEO David Joyner's management is impressive and the stock is worth owning.
- DuPont Performance Highlights: DuPont's earnings report on the same day is expected to showcase CEO Lori Koch's success in improving the company's performance, with the stock soaring 58% over the past six months, reflecting the effectiveness of its electronics business spin-off strategy.
- Robinhood Trading Risks: Robinhood will report earnings on Tuesday, and due to its close correlation with cryptocurrency markets, investors are concerned, as the stock has dropped nearly 27% year-to-date, significantly underperforming the S&P 500's 1.3% gain.
See More
Soft Jobs Report Could Impact Stock Market Next Week
- Job Data Focus: Cramer emphasized the importance of the nonfarm payroll report due next Wednesday, suggesting that a soft reading could lead the Fed to continue cutting rates, which would positively impact the stock market and reflect market expectations of economic slowdown.
- Earnings Reports Ahead: Several companies, including CVS Health, Robinhood, and DuPont, are set to report earnings next week; Cramer believes CVS is the only drug retailer worth owning amid Medicare reform, showcasing its competitive edge in the market.
- DuPont's Strong Performance: Cramer anticipates that DuPont's earnings report will highlight CEO Lori Koch's effective management, particularly after the spinoff of its electronics business, with the stock soaring 58% over the past six months, indicating the success of the company's restructuring.
- McDonald's and Cisco Outlook: Cramer noted that McDonald's maintains a competitive advantage despite beef inflation, while Cisco's stock has risen 10% year-to-date, with both earnings reports expected to provide critical market signals for investors.
See More
Dow Jones Index Surpasses 50,000 for the First Time
- Historic Milestone: The Dow Jones Industrial Average surpassed 50,000 for the first time in 2026, marking a significant achievement since its inception in 1896, reflecting sustained investor confidence amid economic fluctuations.
- Tech Stock Influence: This milestone was largely driven by strong performances from technology stocks, particularly Nvidia's replacement of Intel, highlighting the market's heightened focus and investment enthusiasm in the artificial intelligence sector.
- Market Rebound: Following a downturn in 2022, the Dow rebounded nearly 13% in 2023, with this breakthrough occurring against the backdrop of the index climbing over 1,100 points, demonstrating a robust market recovery.
- Changing Economic Landscape: Despite concerns over Trump's tariff policies and the impact of AI spending, the market has shown resilience, indicating investor optimism regarding future economic growth.
See More
Dow Jones Surges Over 950 Points Amid Market Rebound
- Dow Jones Rebound: On Friday, the Dow Jones surged over 950 points, nearly 2%, indicating a strong market rebound, which Jim Cramer described as a 'mighty Dow rally', boosting investor sentiment.
- Amazon Stock Decline: Despite the overall rise in Dow components, Amazon's stock fell 7.5% due to massive spending plans and weaker-than-expected guidance revealed in Thursday's earnings report, impacting investor confidence.
- Eli Lilly Share Recovery: Eli Lilly shares bounced back 3% on Friday after an almost 8% drop, as the FDA announced actions against illegal copycat drugs, which bolstered market confidence in Lilly's growth potential.
- Linde Rating Downgrade: Following a 2.9% decline post-earnings on Thursday, Linde shares dropped another 1.7% on Friday after JPMorgan downgraded its rating to hold, although Jim Cramer maintained a buy rating and raised the price target to $510.
See More
