FSTA vs. FTXG: How These Popular Consumer Staples ETFs Stack Up for Investors

Both the Fidelity MSCI Consumer Staples Index ETF (NYSEMKT:FSTA) and the First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) people the antiaircraft broadside of the U.S. banal market, but they attack it differently: FTXG zeroes successful connected nutrient and beverage stocks, portion FSTA tracks a wide user staples benchmark.

This examination unpacks cost, returns, risk, assemblage tilt, and portfolio operation to assistance investors find which whitethorn align amended with their goals.

Beta measures terms volatility comparative to the S&P 500. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

FSTA is dramatically much affordable successful presumption of fees, charging a overmuch little disbursal ratio. FTXG, however, pays a higher dividend yield, which whitethorn entreaty to income-focused investors.

FSTA is designed to reflector the MSCI USA IMI Consumer Staples 25/50 Index and casts a wide nett with 96 holdings, making it broadly diversified wrong user staples.

Its portfolio is heavy weighted toward household names specified arsenic Costco Wholesale, Walmart, and Procter & Gamble, with these 3 stocks making up astir 37% of assets. With implicit 12 years of history, FSTA presently allocates 98% to user antiaircraft stocks and maintains a precise tiny beingness successful user cyclical.

FTXG, by contrast, targets the Nasdaq US Smart Food & Beverage Index and is acold much concentrated, with conscionable 30 holdings. Its apical stocks — Archer-Daniels-Midland, PepsiCo, and Mondelez International — relationship for implicit 23% of assets. There are nary notable quirks oregon other screens successful either fund.

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Consumer staples stocks tin beryllium astute buys for investors seeking comparative information and stability. This marketplace conception is mostly little affected by economical turbulence compared to immoderate different industries, and a user antiaircraft ETF tin beryllium a elemental and straightforward mode to bargain into this sector.

FSTA is the broader of the 2 funds, with much than 3 times arsenic galore stocks arsenic FTXG. It besides covers a wider swath of the user staples market, including stocks crossed assorted subsectors.

FTXG is simply a narrower fund, lone containing stocks from the nutrient and beverage subsector. While that results successful little diversification, a much targeted attack tin sometimes present higher returns due to the fact that lower-performing stocks are little apt to dilute the fund’s earnings.