Better Consumer Staples ETF: Vanguard's VDC vs. State Street's XLP

Comparing the State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT:XLP) and Vanguard Consumer Staples ETF (NYSEMKT:VDC) reveals two defensive giants with nearly identical costs but different approaches to portfolio concentration and yield.

Both funds serve as defensive ballast for a portfolio, focusing on companies that sell essentials like food, beverages, and household goods. These "recession-resistant" stocks often perform differently than the broader market during periods of volatility. For investors seeking lower volatility than the broader S&P 500, these ETFs offer a focused way to own the companies behind everyday products. The fund's portfolio consists of companies that provide essential goods.

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

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