Vanguard's VDC vs. Invesco's RSPS

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The Vanguard Shopper Staples ETF (NYSEMKT: VDC) and Invesco S&P 500 Equal Weight Shopper Staples ETF (NYSEMKT: RSPS) each deal with shopper staples, however VDC is far bigger, carries a decrease expense ratio, and weights its holdings by market cap, whereas RSPS makes use of an equal-weight strategy and prices extra.

Each VDC and RSPS give buyers publicity to the patron staples sector, however they strategy it in a different way. VDC tracks a broad, cap-weighted index together with over 100 shares, whereas RSPS equally weights simply 37 S&P 500 shopper staples names. This comparability highlights their variations in value, latest returns, danger, and portfolio building.

Metric	VDC	RSPS
Issuer	Vanguard	Invesco
Expense ratio	0.09%	0.40%
1-yr return (as of 2026-02-04)	11.5%	14.5%
Dividend yield	2.10%	2.63%
Beta	0.64	0.61
AUM	$9.05 billion	$249.67 million

Beta measures worth volatility relative to the S&P 500; beta is calculated from five-year month-to-month returns. The 1-yr return represents complete return over the trailing 12 months.

RSPS is costlier to carry than VDC, charging 0.40% yearly versus 0.09%, nevertheless it has delivered a barely increased dividend yield, paying 2.6% in comparison with VDC’s 2.1%.

Metric	VDC	RSPS
Max drawdown (5 y)	-16.55%	-18.60%
Development of $1,000 over 5 years	$1,375	$1,073

RSPS tracks an equal-weighted index of S&P 500 shopper staples names, giving smaller corporations an even bigger function than in conventional cap-weighted funds. With 37 holdings, its largest positions just lately included Bunge International SA (NYSE:BG), Colgate-Palmolive Co. (NYSE:CL), and Church & Dwight Co Inc. (NYSE:CHD), every making up simply over 3% of property. The fund has been working for over 19 years and holds solely shopper defensive shares, rebalancing quarterly.

VDC, in distinction, consists of over 100 corporations, weighting them by market cap and leading to heavy tilts towards giants like Walmart Inc. (NASDAQ:WMT), Costco Wholesale Corp. (NASDAQ:COST), and Procter & Gamble Co. (NYSE:PG). VDC’s sector make-up is almost all shopper defensive, with small allocations to shopper cyclical and industrials, making it extra diversified by variety of holdings and providing broader business protection inside staples.

For extra steerage on ETF investing, take a look at the complete information at this hyperlink.

Though the Vanguard Shopper Staples ETF (VDC) and the Invesco S&P 500 Equal Weight Shopper Staples ETF (RSPS) each ship publicity to the patron staples sector, their strategy is kind of completely different. These variations may be the explanations for selecting one over the opposite.

VDC is a a lot bigger fund with over $9 billion property underneath administration (AUM). This offers quite a lot of liquidity, and its greater than 100 holdings affords a various portfolio of shares. Its expense ratio is fairly low, and it has delivered higher returns than RSPS over time. These elements make VDC a great ETF for buyers who’re value aware and like a “set it and overlook it” mindset.

Nonetheless, since VDC is weighted by market cap, the ETF’s efficiency is closely tied to the most important corporations within the sector, equivalent to Walmart. Its extra diversified holdings helps to melt this disadvantage.

RSPS focuses on a handful of shopper staples shares, and its equal weighting strategy means no firm dominates. Its increased dividend yield can attraction to income-oriented buyers, though that’s offset to some extent by its increased expense ratio.

VDC is the higher alternative for buyers who like its bigger AUM, broader diversification, and decrease value. RSPS is the ETF to select for those who need the next dividend yield and need a extra balanced portfolio that doesn’t skew in the direction of mega-cap shares.

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Robert Izquierdo has positions in Walmart. The Motley Idiot has positions in and recommends Colgate-Palmolive, Costco Wholesale, and Walmart. The Motley Idiot has a disclosure coverage.

Higher Shopper Staples ETF: Vanguard’s VDC vs. Invesco’s RSPS was initially revealed by The Motley Idiot

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