XLP vs VDC: The Two Best Consumer Staples ETFs, Ultra-Cheap Defensive Exposure
XLP and VDC both hold consumer staples companies: P&G, Costco, Coca-Cola, PepsiCo. VDC has more mid-cap companies. Both pay 2-3% yields and hold up well in downturns.
XLP (Consumer Staples Select Sector SPDR) and VDC (Vanguard Consumer Staples ETF) are both excellent consumer staples ETFs at nearly identical, rock-bottom fees. XLP holds 38 S&P 500 consumer staples companies: Procter & Gamble, Costco, Coca-Cola, PepsiCo, and Walmart dominate. VDC holds ~100 companies including mid-cap and smaller consumer staples not in the S&P 500. Both charge essentially the same: XLP 0.09%, VDC 0.10%. Consumer staples is the classic defensive sector: people buy toothpaste, food, and household goods regardless of economic conditions. XLP's higher trading volume ($600M+/day) makes it the preferred institutional hedging vehicle. VDC's broader index adds diversification into mid-cap consumer staples companies. For long-term defensive positioning, either works well.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 XLP vs VDC: Key Facts Side by Side
| Metric | XLP | VDC |
|---|---|---|
| Fund Name | State Street Consumer Staples Select Sector SPDR ETF | Vanguard Consumer Staples Index Fund ETF Shares |
| Issuer | State Street | Vanguard |
| Tracks Index | Consumer Staples Select Sector Index | MSCI US IMI Consumer Staples 25/50 |
| Expense Ratio | 0.09% ✓ | 0.10% |
| Cost per $10K/yr | $9.00 | $10.00 |
| AUM | $13.4B | $8.7B |
| Holdings | 38 | 100 |
| Inception | 1998 | 2004 |
| 1-Year Return | +6.54% | +5.76% |
| 3-Year Return | +11.40% | +11.96% |
| 5-Year Return | +6.57% | +7.22% |
| Dividend Yield | 2.73% | 2.24% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.01% |
AUM and returns updated Oct 14, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
Comparing two ETFs? Grab the free checklist.
The seven things that actually decide a comparison: the index, fee, overlap, tax, liquidity, concentration, and structure. One printable page.
No spam · Unsubscribe anytime · Your download opens instantly
Your download is ready above. We also emailed a confirmation link, click it to get The Expense Report, our weekly ETF newsletter.
📊 XLP vs VDC: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$1/yr per $10K vs VDC
- already use State Street and prefer staying within one fund family
- want broader diversification (100 holdings vs 38)
- already use Vanguard and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
⚙️ Want the Full Interactive Comparison?
Side-by-side holdings overlap, sector breakdown, and live performance tabs, all in one place.
Run Full XLP vs VDC Comparison → Free · No signup · Instant results❓ XLP vs VDC: Frequently Asked Questions
New to ETF investing? See answers to the most common ETF questions →