State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP) stands out for its lower cost and higher yield, while iShares Global Consumer Staples ETF (NYSEMKT:KXI) offers broader global exposure and a higher 1-year return as of Jan. 9, 2026.
XLP and KXI both target the consumer staples sector, but XLP keeps its focus on major U.S. names, whereas KXI includes companies from around the world. This comparison unpacks how each ETF’s cost, performance, risk, and holdings stack up for investors considering a defensive allocation.
Metric
XLP
KXI
Issuer
SPDR
IShares
Expense ratio
0.08%
0.39%
1-yr return (as of 2026-01-09)
3.8%
11.2%
Dividend yield
2.7%
2.3%
Beta
0.53
0.55
AUM
$14.6 billion
$886.6 million
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
XLP looks more affordable on fees, charging just 0.08% versus KXI’s 0.39%, and also offers a higher dividend yield at 2.7% compared to KXI’s 2.3%—a modest but potentially meaningful difference for income-focused investors.
Metric
XLP
KXI
Max drawdown (5 y)
-16.31%
-17.43%
Growth of $1,000 over 5 years
$1,195
$1,136
KXI holds 96 companies and is over 19 years old, making it a seasoned option for global consumer staples exposure. Its portfolio is 97% consumer defensive, with minor tilts toward consumer cyclical and financial services. The top holdings include Walmart Inc (NASDAQ:WMT) at 9.92%, Costco Wholesale Corp (NASDAQ:COST) at 9.44%, and Philip Morris International Inc (NYSE:PM) at 4.74%, reflecting a mix of U.S. giants and international leaders.
In contrast, XLP’s 36-stock roster is strictly U.S. consumer defensive, led by Walmart Inc, Costco Wholesale Corp, and Procter + Gamble (NYSE:PG). With no quirks or non-core sector drift, XLP delivers pure, targeted exposure to established U.S. staples companies.
For more guidance on ETF investing, check out the full guide at this link.
For investors seeking consumer staples exposure, State Street Consumer Staples Select Sector SPDR ETF (XLP) and iShares Global Consumer Staples ETF (KXI) are two ETFs worth considering. While both funds aim to track the consumer staples sector, they go about it very different ways. Here’s what investors should know.
First off, let’s examine KXI. This fund is a global one, with roughly 59% of exposure to U.S. stocks, 29% to European stocks, 7% to Asian stocks, with the remaining 5% divided amongst the rest of the world. While large American companies like Walmart and Costco are at the top of its holdings list, so are European titans like Nestle and Unilever. As for performance, KXI has underperformed the S&P 500 over the last five years, generating a total return of 28.1%, equating to a compound annual growth rate (CAGR) of 5.1%. Its dividend yield stands at 2.3%, and it has a middle of the road expense ratio of 0.39%.
Turning to XLP, this fund focuses more closely on the U.S. consumer market, with almost 100% of its holdings in American stocks. Reviewing its top holdings, many iconic names appear, including Pepsi, Coca-Cola, and Target. Performance-wise, XLP has outperformed KXI, while still underperforming the S&P 500. The fund has generated a total return of 36.2% over the last five years, with a CAGR of 6.4%. Both funds significantly trail the S&P 500’s five-year CAGR of 14.6%. As for income, XLP sports a dividend yield of 2.7% — higher than KXI. It also has a lower expense ratio of 0.08%.
In summary, XLP beats KXI on five-year performance, yield, and fees. Indeed, the strongest argument one could make for KXI is that it is more regionally diversified, with many of its holdings based outside of U.S. However, aside from this point, most investors seeking exposure to the consumer staples market would be wise to consider XLP before KXI.
ETF: Exchange-traded fund that holds a basket of assets and trades like a stock.Expense ratio: Annual fund fee, expressed as a percentage of assets, deducted from returns.Dividend yield: Annual dividends per share divided by the current share price, shown as a percentage.Total return: Investment performance including price changes plus all dividends, assuming dividends are reinvested.Beta: Measure of an investment’s volatility relative to the overall market, typically compared to the S&P 500.AUM: Assets under management; the total market value of all assets in a fund.Max drawdown: Largest peak-to-trough decline in value over a specific period, showing worst historical loss.Consumer staples sector: Companies providing everyday essential products like food, beverages, and household goods.Consumer defensive: Another term for consumer staples; businesses whose demand holds up in most economic conditions.Consumer cyclical: Companies selling non-essential goods and services whose demand rises and falls with the economy.Global diversification: Spreading investments across multiple countries to reduce reliance on a single market.Holdings: The individual securities, such as stocks or bonds, that a fund owns in its portfolio.
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Jake Lerch has positions in Coca-Cola, Philip Morris International, and Procter & Gamble. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool recommends Nestlé, Philip Morris International, and Unilever. The Motley Fool has a disclosure policy.
Consumer Staples ETFs: XLP Focuses on Domestic Stocks, While KXI Offers International Exposure was originally published by The Motley Fool
