"The consumer staples sector exists because people need to eat, clean, and maintain routines regardless of what the economy does. Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP) packages that defensive logic into a single ticker, concentrating 99.3% of its portfolio in companies that produce essentials like groceries, household goods, and beverages. With $16.2 billion in net assets and an 8 basis point expense ratio, it delivers broad sector exposure without meaningful cost drag."
"The fund's return engine is straightforward: steady cash flows from brands consumers buy repeatedly, coupled with dividend income from mature companies that prioritize shareholder returns over aggressive reinvestment. XLP fits portfolios seeking stability during economic uncertainty or market volatility. The fund's 2.67% dividend yield and minimal 8% portfolio turnover reflect a buy-and-hold strategy designed for income generation rather than capital appreciation."
XLP concentrates 99.3% of assets in consumer staples companies producing groceries, household goods, and beverages, with $16.2 billion in net assets and an 8 basis point expense ratio. The fund generates steady cash flows from repeat consumer purchases and dividend income from mature companies. A 2.67% dividend yield and 8% portfolio turnover reflect a buy-and-hold, income-focused strategy. Portfolio concentration places 28.73% of assets in Walmart, Costco, and Procter & Gamble. Retail sales reached $735 billion in December 2025, up 3.3% year-over-year despite a 52.9 consumer sentiment reading. XLP returned 15.2% year-to-date through February 13, 2026.
Read at 24/7 Wall St.
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