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VDC expenses a a lot decrease expense ratio and holds over 100 shares, whereas RSPS is pricier and extra concentrated.
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VDC has delivered barely higher one-year returns, with a narrower historic drawdown.
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Each funds give attention to shopper staples, however RSPS equally weights holdings whereas VDC is market-cap weighted, resulting in totally different high holdings and sector tilts.
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The Vanguard Client Staples ETF (NYSEMKT:VDC) gives decrease prices, broader diversification, and barely stronger latest efficiency, whereas the Invesco S&P 500 Equal Weight Client Staples ETF (NYSEMKT:RSPS) takes a extra concentrated, equal-weighted strategy throughout the sector.
Each VDC and RSPS present publicity to U.S. shopper staples shares, interesting to traders searching for defensive sector protection. VDC tracks a broad market-cap-weighted index, whereas RSPS makes use of an equal-weighted technique targeted on S&P 500 constituents. Right here is how they examine throughout value, threat, efficiency, and portfolio make-up.
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Metric
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RSPS
|
VDC
|
|
Issuer
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Invesco
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Vanguard
|
|
Expense ratio
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0.40%
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0.09%
|
|
1-yr return (as of Dec. 17, 2025)
|
(3.2%)
|
0.05%
|
|
Dividend yield
|
2.7%
|
2.2%
|
|
Beta
|
0.52
|
0.56
|
|
AUM
|
$236.2 million
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$8.6 billion
|
Beta measures worth volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents complete return over the trailing 12 months.
VDC is extra reasonably priced, with an expense ratio of 0.09% in comparison with 0.40% for RSPS, whereas RSPS gives a barely larger dividend yield at 2.7% versus 2.2% for VDC.
|
Metric
|
RSPS
|
VDC
|
|
Max drawdown (5 y)
|
(18.64%)
|
(16.55%)
|
|
Progress of $1,000 over 5 years
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$988
|
$1,244
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VDC holds 105 shares and tracks the broader shopper staples sector, with a portfolio that’s 98% shopper defensive, 1% shopper cyclical, and a negligible slice of industrials. Its largest positions are Walmart (NASDAQ:WMT) at 14.53%, Costco Wholesale (NASDAQ:COST) at 12.00%, and The Procter & Gamble (NYSE:PG) at 10.09%. The fund has a protracted observe document at 21.9 years and pays dividends quarterly, with the newest ex-dividend date on Dec. 17, 2025.
RSPS, in contrast, is strictly targeted on shopper defensive shares throughout the S&P 500 and weights every holding equally, leading to 37 positions. High names embody Greenback Normal (NYSE:DG) at 3.52% and Monster Beverage (NASDAQ:MNST) at 3.34% of the fund. This equal-weighting can present extra publicity to mid-sized firms, however with much less diversification than VDC.
For extra steerage on ETF investing, try the complete information at this hyperlink.
Each of those ETFs give attention to the defensive shopper staples sector, however their approaches to constructing a portfolio differ considerably. Buyers selecting between them have to weigh the advantages of decrease prices and megacap focus towards equal weighting’s potential to scale back single-stock threat.
VDC tracks the MSCI U.S. Investable Market Client Staples Index with 105 holdings and expenses simply 0.09%. Its market-cap weighting means business giants like Walmart, Costco, and Procter & Gamble dominate the portfolio.
RSPS equally weights 38 shares from the S&P 500 Client Staples Index, giving every holding roughly 2.6% at quarterly rebalances. This prevents focus however prices extra, with a 0.40% expense ratio.
Client staples firms (producers of meals, drinks, family merchandise, and private care gadgets) usually underperform throughout bull markets however present stability when markets decline. Buyers select these funds for dependable dividends and decrease volatility relatively than aggressive progress, making them portfolio anchors throughout financial uncertainty.
Relating to these two ETFs, Vanguard’s VDC delivers decrease prices and has produced stronger latest returns, though each funds have underperformed within the final month. Invesco’s RSPS stands out for spreading threat extra evenly throughout fewer holdings.
Expense ratio: The annual charge, as a share of property, {that a} fund expenses to cowl working prices.
Dividend yield: Annual dividends paid by a fund or inventory divided by its present worth, expressed as a share.
Beta: A measure of a fund’s volatility in comparison with the general market, usually the S&P 500.
Max drawdown: The most important noticed share drop from a fund’s peak worth to its lowest level over a interval.
Equal-weighted: A portfolio technique the place every holding is assigned the identical weight, no matter firm measurement.
Market-cap weighted: A portfolio technique the place holdings are weighted based on every firm’s complete market worth.
AUM (Belongings Below Administration): The overall market worth of property {that a} fund manages on behalf of traders.
Client staples: Corporations that produce important merchandise, comparable to meals, drinks, and family items, wanted no matter financial situations.
Client defensive: One other time period for shopper staples; firms whose merchandise are at all times in demand.
Client cyclical: Corporations whose gross sales are extremely delicate to financial cycles, comparable to retailers and automakers.
Ex-dividend date: The cutoff date to be eligible to obtain the following dividend fee from a inventory or fund.
Complete return: The funding’s worth change plus all dividends and distributions, assuming these payouts are reinvested.
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Sara Appino has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Costco Wholesale, Monster Beverage, and Walmart. The Motley Idiot has a disclosure coverage.
VDC vs. RSPS: Broad Diversification or Balanced Bets for Client Staples Buyers? was initially revealed by The Motley Idiot
