This comparison looks at two U.S. consumer staples sector ETFs: Fidelity MSCI Consumer Staples Index ETF (FSTA 0.02%) and iShares U.S. Consumer Staples ETF (IYK +0.28%). Both aim to provide exposure to consumer staples, but they differ in cost, holdings concentration, and sector purity, which may appeal to different types of investors.
Snapshot (cost & size)
| Metric | IYK | FSTA |
|---|---|---|
| Issuer | IShares | Fidelity |
| Expense ratio | 0.38% | 0.08% |
| 1-yr return (as of Jan. 25, 2026) | 8.52% | 7.13% |
| Dividend yield | 2.61% | 2.19% |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The one-year return represents total return over the trailing twelve months.
FSTA has a lower expense ratio, while IYK has a slight edge in dividend yield and one-year return.
Performance & risk comparison
| Metric | IYK | FSTA |
|---|---|---|
| Max drawdown (5 y) | (15.04%) | (16.59%) |
| Growth of $1,000 over 5 years | $1,171 | $1,315 |
What's inside
Currently holding 97 stocks in its portfolio, FSTA was designed to focus on consumer staple companies across the entire U.S. market, having essentially its entire sector allocation dedicated to that industry. Top positions include Costco (COST 0.55%), Walmart (WMT +0.14%), and Procter & Gamble (PG 0.34%). Walmart and Costco carry more weight than the others, as the two companies combined make up over 25% of the ETF’s weight.
IYK is another ETF that focuses on the consumer sector but also allocates 10% of its holdings to healthcare. The 25-year-old fund is more concentrated than FSTA, holding just 58 stocks and leaning heavily on Procter & Gamble, Coca-cola(KO 0.31%), and Philip Morris International Inc. (PM +1.75%) The three stocks are the only ones that hold more than 10% weight in the ETF.
What this means for investors
Consumer staples often don’t deliver as high returns as other sectors, but they are supposed to be great defensive assets during economic downturns, such as recessions, as many of the products they produce are essential goods in times of necessity.
Thus, both FSTA and IYK are built to have lower risk and volatility than other ETFs and to be less negatively impacted during recession-like events. For example, IYK had its best annual performance ever in its 25-year existence in 2020, when it surged approximately 30%.
Both funds are very similar in holdings; however, FSTA places more weight on large retailers, while IYK leans more on individual product brands. IYK’s partial allocation towards the healthcare sector may not be desirable for investors who are just looking for pure consumer staples. Regardless, for a defensive fund that will stay sturdy during economic downturns, either ETF is a solid option.
For more guidance on ETF investing, check out the full guide at this link.
