Consumer Staples Select Sector SPDR Fund (XLP): Complete Beginner's Guide
Consumer Staples Select Sector SPDR Fund (XLP) is a consumer staples sector ETF from State Street Global Advisors with an expense ratio of 0.09% and $17.0B in assets under management. Our Beginner Suitability Score: 8.5/10 (Great for Beginners). 5-year annualized return: 7.20%.
Last updated: April 2026
State Street Global Advisors • Consumer Staples Sector
Expense Ratio
0.09%
AUM
$17.0B
Dividend Yield
2.50%
Inception
1998
Beginner Score
8.5/10
What is Consumer Staples Select Sector SPDR Fund?
XLP holds the consumer staples companies from the S&P 500, which sell essential everyday products like food, beverages, household goods, and personal care items. These companies maintain steady sales even during recessions because people always need basic necessities. Beginners value XLP as a defensive holding because it tends to hold up much better than the broader market during economic downturns while paying consistent dividends.
XLP is managed by State Street Global Advisors and has been available since 1998. With $17.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.09%, which means for every $10,000 you invest, you pay approximately $9 per year in management fees.
XLP at a Glance — Key Metrics
| Expense Ratio | 0.09% |
| Total Holdings | 38 |
| P/E Ratio | 24.2 |
| Beta | 0.58 |
| Dividend Yield | 2.50% |
| AUM | $17.0B |
| Inception Year | 1998 |
| Issuer | State Street Global Advisors |
Top 10 Holdings in XLP
XLP holds 38 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Procter & Gamble Co. | PG | 14.20% |
| 2 | Costco Wholesale Corp. | COST | 12.80% |
| 3 | Walmart Inc. | WMT | 9.80% |
| 4 | Coca-Cola Co. | KO | 9.20% |
| 5 | PepsiCo Inc. | PEP | 8.50% |
| 6 | Philip Morris International | PM | 5.50% |
| 7 | Mondelez International Inc. | MDLZ | 4.20% |
| 8 | Colgate-Palmolive Co. | CL | 3.80% |
| 9 | Altria Group Inc. | MO | 3.50% |
| 10 | Constellation Brands Inc. | STZ | 3.20% |
XLP's top holding is Procter & Gamble Co. (PG) at 14.20%, followed by Costco Wholesale Corp. (COST) at 12.80% and Walmart Inc. (WMT) at 9.80%. The top 10 holdings account for 74.70% of the fund's 38 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Procter & Gamble Co. | PG | 14.20% |
| 2 | Costco Wholesale Corp. | COST | 12.80% |
| 3 | Walmart Inc. | WMT | 9.80% |
| 4 | Coca-Cola Co. | KO | 9.20% |
| 5 | PepsiCo Inc. | PEP | 8.50% |
| 6 | Philip Morris International | PM | 5.50% |
| 7 | Mondelez International Inc. | MDLZ | 4.20% |
| 8 | Colgate-Palmolive Co. | CL | 3.80% |
| 9 | Altria Group Inc. | MO | 3.50% |
| 10 | Constellation Brands Inc. | STZ | 3.20% |
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XLP Performance History
Here's how XLP has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
1.60%
1 Year
11.20%
3 Year
5.50%
5 Year
7.20%
10 Year
8.20%
XLP has returned 7.20% annualized over 5 years and 8.20% over 10 years. YTD return is 1.60%.
View data table
| Period | Return |
|---|---|
| YTD | 1.60% |
| 1 Year | 11.20% |
| 3 Year | 5.50% |
| 5 Year | 7.20% |
| 10 Year | 8.20% |
Beginner Suitability Score: 8.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
XLP scores 8.5/10 because it has very low fees, shows lower-than-average volatility, focuses on 38 selected holdings, and has been available since 1998, giving it a proven track record.
How to Buy XLP — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "XLP" — Use the search bar in your brokerage platform to find Consumer Staples Select Sector SPDR Fund.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
XLP Sector Allocation
Here's how XLP distributes its investments across different sectors of the economy:
XLP's largest sector allocation is Household Products at 24.8%, followed by Beverages at 22.5% and Food & Staples Retailing at 19.8%.
View data table
| Sector | Weight |
|---|---|
| Household Products | 24.8% |
| Beverages | 22.5% |
| Food & Staples Retailing | 19.8% |
| Food Products | 14.2% |
| Tobacco | 9.8% |
| Personal Products | 5.5% |
| Hypermarkets | 2.2% |
| Other Consumer Staples | 1.2% |
Dollar Cost Averaging Into XLP
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With XLP's expense ratio of 0.09%, a $10,000 investment would lose approximately $771 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
XLP's expense ratio of 0.09% costs $771 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $45,839.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,632 | $61 |
| 10 | $21,589 | $21,410 | $179 |
| 15 | $31,722 | $31,327 | $395 |
| 20 | $46,610 | $45,839 | $771 |
Pros and Cons of XLP
Pros
- ✓Companies sell essential products people buy regardless of economic conditions, providing earnings stability
- ✓Low beta of 0.58 means significantly less volatility than the overall stock market
- ✓Long track record of consistent dividend payments from mature, cash-generating businesses
- ✓Cheap 0.09% expense ratio for focused access to the consumer staples sector
Cons
- ✗Slow growth sector that significantly lags during strong economic expansions and bull markets
- ✗Concentrated in Procter & Gamble and Costco, which together represent about 27% of assets
- ✗Premium valuations for perceived safety mean the stocks may not be cheap relative to growth
XLP vs Similar ETFs
See how XLP stacks up against similar funds:
Frequently Asked Questions
Is XLP a good ETF for beginners?▾
XLP has a Beginner Suitability Score of 8.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.
What is the expense ratio of XLP?▾
XLP has an expense ratio of 0.09%. This means for every $10,000 you invest, you pay approximately $9 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in XLP?▾
You can invest in XLP with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does XLP pay dividends?▾
Yes, XLP pays dividends with a current yield of approximately 2.50%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in XLP?▾
The top holdings in XLP include Procter & Gamble Co. (14.20%), Costco Wholesale Corp. (12.80%), Walmart Inc. (9.80%), and more. The fund holds 38 total positions, providing focused exposure to selected companies.
What sectors does XLP invest in?▾
XLP's largest sector allocations are Household Products (24.80%), Beverages (22.50%), Food & Staples Retailing (19.80%). This sector distribution shows a focus on household products stocks.
How much do XLP's fees cost over time?▾
With an expense ratio of 0.09%, a $10,000 investment in XLP would lose approximately $771 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.