VDC costs a a lot decrease expense ratio and holds over 100 shares, whereas RSPS is pricier and extra concentrated.
VDC has delivered barely higher one-year returns, with a narrower historic drawdown.
Each funds deal with client 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) presents 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 method throughout the sector.
Each VDC and RSPS present publicity to U.S. client 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 evaluate throughout value, threat, efficiency, and portfolio make-up.
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 value volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents whole return over the trailing 12 months.
VDC is extra inexpensive, with an expense ratio of 0.09% in comparison with 0.40% for RSPS, whereas RSPS presents 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 | $988 | $1,244 |
VDC holds 105 shares and tracks the broader client staples sector, with a portfolio that’s 98% client defensive, 1% client 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 an extended monitor report at 21.9 years and pays dividends quarterly, with the latest ex-dividend date on Dec. 17, 2025.
RSPS, in contrast, is strictly targeted on client defensive shares throughout the S&P 500 and weights every holding equally, leading to 37 positions. High names embrace Greenback Common (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.
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Each of those ETFs deal with the defensive client staples sector, however their approaches to constructing a portfolio differ considerably. Traders selecting between them must weigh the advantages of decrease prices and megacap focus in opposition to equal weighting’s potential to cut back single-stock threat.
VDC tracks the MSCI U.S. Investable Market Client Staples Index with 105 holdings and costs simply 0.09%. Its market-cap weighting means trade 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. Traders select these funds for dependable dividends and decrease volatility relatively than aggressive development, 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 price, as a proportion of property, {that a} fund costs to cowl working prices.
Dividend yield: Annual dividends paid by a fund or inventory divided by its present value, expressed as a proportion.
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 proportion 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 dimension.
Market-cap weighted: A portfolio technique the place holdings are weighted based on every firm’s whole market worth.
AUM (Belongings Below Administration): The full market worth of property {that a} fund manages on behalf of traders.
Client staples: Firms that produce important merchandise, equivalent to meals, drinks, and family items, wanted no matter financial situations.
Client defensive: One other time period for client staples; firms whose merchandise are at all times in demand.
Client cyclical: Firms whose gross sales are extremely delicate to financial cycles, equivalent to retailers and automakers.
Ex-dividend date: The cutoff date to be eligible to obtain the following dividend cost from a inventory or fund.
Complete return: The funding’s value 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 Traders? was initially printed by The Motley Idiot
