Should You Invest in the State Street Consumer Staples Select Sector SPDR ETF (XLP)?

If you're interested in broad exposure to the Consumer Staples - Broad segment of the equity market, look no further than the State Street Consumer Staples Select Sector SPDR ETF (XLP), a passively managed exchange traded fund launched on December 16, 1998.Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 12, placing it in bottom 25%.Index DetailsThe fund is sponsored by State Street Investment Management. It has amassed assets over $15.13 billion, making it the largest ETF attempting to match the performance of the Consumer Staples - Broad segment of the equity market. XLP seeks to match the performance of the Consumer Staples Select Sector Index before fees and expenses.The Consumer Staples Select Sector Index seeks to provide an effective representation of the consumer staples sector of the S&P 500 Index.CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.It has a 12-month trailing dividend yield of 2.53%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Consumer Staples sector -- about 100% of the portfolio.Looking at individual holdings, Walmart Inc (WMT) accounts for about 11.93% of total assets, followed by Costco Wholesale Corp (COST) and Procter + Gamble Co/the (PG).The top 10 holdings account for about 62.57% of total assets under management.Performance and RiskYear-to-date, the State Street Consumer Staples Select Sector SPDR ETF return is roughly 11.17% so far, and was up about 7.32% over the last 12 months (as of 05/19/2026). XLP has traded between $75.6 and $90.01 in this past 52-week period.The ETF has a beta of 0.49 and standard deviation of 12.01% for the trailing three-year period, making it a medium risk choice in the space. With about 39 holdings, it has more concentrated exposure than peers.AlternativesState Street Consumer Staples Select Sector SPDR ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XLP is an outstanding option for investors seeking exposure to the Consumer Staples ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.Fidelity MSCI Consumer Staples Index ETF (FSTA) tracks MSCI USA IMI Consumer Staples Index and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) tracks MSCI US Investable Market Consumer Staples 25/50 Index. Fidelity MSCI Consumer Staples Index ETF has $1.43 billion in assets, Vanguard Consumer Staples Index Fund ETF Shares has $8.21 billion. FSTA has an expense ratio of 0.08%, and VDC charges 0.09%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks