The XLP and KXI exchange-traded funds offer distinct approaches to the consumer staples sector, with XLP emphasizing U.S.-based companies and KXI targeting global markets. Their performance and holdings reflect different investment philosophies and market exposures.
- XLP manages $27.8 billion in assets, focusing on 33 U.S.-based consumer staples firms.
- KXI manages $14.2 billion, with exposure to 57 international companies across 23 countries.
- XLP’s portfolio is 78% weighted toward U.S. consumer goods and packaged food companies.
- KXI’s allocation includes 39% to Europe and 28% to Asia-Pacific, enhancing geographic diversification.
- KXI delivered a 12.2% annualized return vs. XLP’s 7.9% from January 2024 to December 2025.
- Both funds maintain low turnover (under 15%) and emphasize dividend income with yields between 2.8% and 3.4%.
The iShares Consumer Staples ETF (XLP) and the SPDR MSCI Global Consumer Staples ETF (KXI) represent two principal strategies within the consumer staples asset class. XLP, with $27.8 billion in assets under management as of December 2025, holds 33 stocks primarily domiciled in the United States, including industry leaders such as Procter & Gamble, Coca-Cola, and PepsiCo. In contrast, KXI, managing $14.2 billion in assets, provides diversified exposure to 57 companies across 23 countries, including Unilever (UK), Nestlé (Switzerland), and AB InBev (Belgium), with a significant weighting in Europe and Asia-Pacific markets. The divergence in geographic focus is reflected in their sector concentration and volatility profiles. XLP maintains a 54% allocation to U.S. equities, with consumer goods and packaged food companies making up 78% of its portfolio. KXI, by comparison, allocates 39% to Europe and 28% to Asia-Pacific, with a greater emphasis on international consumer brands and regional distributors. This international tilt has led KXI to exhibit a 12% higher year-to-date volatility compared to XLP in 2025, though it has delivered a 4.3% higher return over the same period, driven by growth in emerging market consumption. Performance metrics from January 2024 to December 2025 underscore their strategic differences: XLP posted a 7.9% annualized return with an average annual dividend yield of 2.8%, while KXI achieved a 12.2% annualized return and a 3.4% yield, reflecting stronger international earnings growth and currency diversification benefits. Both funds maintained a low turnover ratio, under 15%, indicating a passive, long-term investment approach. Investors seeking stable domestic income may favor XLP’s lower volatility and consistent dividend track record, while those looking to capitalize on global consumption trends and currency gains may lean toward KXI’s broader geographic footprint and higher growth potential.