VDC charges a much lower expense ratio and holds over 100 stocks, while RSPS is pricier and more concentrated.
VDC has delivered slightly better one-year returns, with a narrower historical drawdown.
Both funds focus on consumer staples, but RSPS equally weights holdings while VDC is market-cap weighted, leading to different top holdings and sector tilts.
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The Vanguard Consumer Staples ETF (NYSEMKT:VDC) offers lower costs, broader diversification, and slightly stronger recent performance, while the Invesco S&P 500 Equal Weight Consumer Staples ETF (NYSEMKT:RSPS) takes a more concentrated, equal-weighted approach within the sector.
Both VDC and RSPS provide exposure to U.S. consumer staples stocks, appealing to investors seeking defensive sector coverage. VDC tracks a broad market-cap-weighted index, while RSPS uses an equal-weighted strategy focused on S&P 500 constituents. Here is how they compare across cost, risk, performance, and portfolio makeup.
Metric | RSPS | VDC |
|---|
Issuer | Invesco | Vanguard |
Expense ratio | 0.40% | 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 | $8.6 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
VDC is more affordable, with an expense ratio of 0.09% compared to 0.40% for RSPS, while RSPS offers a slightly higher dividend yield at 2.7% versus 2.2% for VDC.
Metric | RSPS | VDC |
|---|
Max drawdown (5 y) | (18.64%) | (16.55%) |
Growth of $1,000 over 5 years | $988 | $1,244 |
VDC holds 105 stocks and tracks the broader consumer staples sector, with a portfolio that is 98% consumer defensive, 1% consumer 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 long track record at 21.9 years and pays dividends quarterly, with the most recent ex-dividend date on Dec. 17, 2025.
RSPS, by contrast, is strictly focused on consumer defensive stocks within the S&P 500 and weights each holding equally, resulting in 37 positions. Top names include Dollar General (NYSE:DG) at 3.52% and Monster Beverage (NASDAQ:MNST) at 3.34% of the fund. This equal-weighting can provide more exposure to mid-sized companies, but with less diversification than VDC.
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Both of these ETFs focus on the defensive consumer staples sector, but their approaches to building a portfolio differ significantly. Investors choosing between them need to weigh the benefits of lower costs and megacap concentration against equal weighting’s potential to reduce single-stock risk.
VDC tracks the MSCI U.S. Investable Market Consumer Staples Index with 105 holdings and charges just 0.09%. Its market-cap weighting means industry giants like Walmart, Costco, and Procter & Gamble dominate the portfolio.
RSPS equally weights 38 stocks from the S&P 500 Consumer Staples Index, giving each holding roughly 2.6% at quarterly rebalances. This prevents concentration but costs more, with a 0.40% expense ratio.
Consumer staples companies (producers of food, beverages, household products, and personal care items) typically underperform during bull markets but provide stability when markets decline. Investors choose these funds for reliable dividends and lower volatility rather than aggressive growth, making them portfolio anchors during economic uncertainty.
When it comes to these two ETFs, Vanguard’s VDC delivers lower costs and has produced stronger recent returns, although both funds have underperformed in the last month. Invesco’s RSPS stands out for spreading risk more evenly across fewer holdings.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock divided by its current price, expressed as a percentage.
Beta: A measure of a fund’s volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest observed percentage drop from a fund’s peak value to its lowest point over a period.
Equal-weighted: A portfolio strategy where each holding is assigned the same weight, regardless of company size.
Market-cap weighted: A portfolio strategy where holdings are weighted according to each company’s total market value.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Consumer staples: Companies that produce essential products, such as food, beverages, and household goods, needed regardless of economic conditions.
Consumer defensive: Another term for consumer staples; companies whose products are always in demand.
Consumer cyclical: Companies whose sales are highly sensitive to economic cycles, such as retailers and automakers.
Ex-dividend date: The cutoff date to be eligible to receive the next dividend payment from a stock or fund.
Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Monster Beverage, and Walmart. The Motley Fool has a disclosure policy.
VDC vs. RSPS: Broad Diversification or Balanced Bets for Consumer Staples Investors? was originally published by The Motley Fool
