DV
Dividend Vision

ETF Comparison

VDC vs XLP: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Consumer Staples ETF and State Street Consumer Staples Select Sector SPDR ETF covering yield, cost, risk, and income potential.

Updated October 16, 2026

How these figures are calculated: methodology.

Best for

  • VDCInvestors who want broad equity exposure.
  • XLPInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

VDC has lagged XLP over the trailing twelve months, posting a 12.99% total return against 14.43%. The picture flips over 10 years, though — VDC has compounded at 8.48% a year, ahead of XLP at 8.15%. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jan 2004Volatility Sharpe Sortino Max drawdown
VDC14.24%12.99%12.62%7.79%8.48%9.52%12.7%0.610.89-9.4%
XLP14.98%14.43%12.09%7.15%8.15%9.08%13.0%0.560.81-9.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jan 2004” measures every fund from January 30, 2004 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricVDCXLP
Full nameVanguard Consumer Staples ETFState Street Consumer Staples Select Sector SPDR ETF
IssuerVanguardState Street
Underlying indexMSCI US Investable Market Consumer Staples 25/50 IndexConsumer Staples Select Sector Index
Last Close$237.43 as of October 16, 2026$87.62 as of October 16, 2026
Distribution rate2.04%2.47%
Trailing 12-month yield2.06%2.51%
Distribution Safety Score™ 8991
Safety-Adjusted Yield 1.82%2.25%
Expense ratio0.09%0.08%
AUM$7.62B$14.8B
Distribution frequencyQuarterlyQuarterly
ObjectiveTracks the MSCI US Investable Market Consumer Staples 25/50 Index.Tracks the Consumer Staples Select Sector Index from the S&P 500.
Asset classEquityEquity
Inception date01/26/200412/16/1998
Beta0.50.48
Last dividend$1.211$0.541
Ex-dividend date09/23/202609/21/2026

Bottom lineVDC and XLP are both for investors who want broad equity exposure — so strategy isn't the deciding factor here. Fees and payouts are close too, so it comes down to which your broker offers commission-free and any share-price or tax-lot preference.

Model this comparison:
Compare in my portfolio Forecast income Save to watchlist

Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Vanguard
ETFs116
Total AUM$4.66T

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VDC.

See all ETFs from Vanguard
State Street
ETFs186
Total AUM$2.15T

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLP.

See all ETFs from State Street

Want to go deeper?

Add these ETFs to a sample portfolio and forecast your dividend income over 5+ years — free to start, no credit card.

Compare in my portfolio Forecast income Save to watchlist

Quick verdict

VDC (Vanguard Consumer Staples ETF) and XLP (State Street Consumer Staples Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XLP offers the higher yield at 2.47% vs 2.04% for VDC. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLP is cheaper with an expense ratio of 0.08% compared to 0.09%.

They have different reference exposures: VDC is linked to MSCI US Investable Market Consumer Staples 25/50 Index while XLP is linked to Consumer Staples Select Sector Index, which means their performance drivers differ.

XLP is the larger fund by assets ($14.8B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, VDC would generate roughly $51.00 cash per distribution, while XLP would produce $61.75 cash per distribution, at current distribution rates. Both pay quarterly distributions.

VDC yield2.04%
XLP yield2.47%
Cash diff on $10K$10.75

Cost & efficiency

Over 10 years on $10,000, VDC would cost approximately $90 in fees vs $80 for XLP (simplified, not compounded). The $10.00 difference may be offset by yield or performance.

VDC ER0.09%
XLP ER0.08%

Strategy & risk

VDC tracks MSCI US Investable Market Consumer Staples 25/50 Index, while XLP tracks Consumer Staples Select Sector Index. Beta is 0.5 for VDC and 0.48 for XLP — effectively similar market sensitivity.

VDC beta0.5
XLP beta0.48

Fund details

VDC is managed by Vanguard (launched 01/26/2004) with $7.62B in assets. XLP is managed by State Street (launched 12/16/1998) with $14.8B in assets.

VDC AUM$7.62B
XLP AUM$14.8B
Ready to act?
Open in Comparator Model in portfolio See pricing

Enjoyed this page?

Do us a favor — if you found this comparison useful, please share it with a friend researching dividend ETFs.

Frequently asked questions

What is the current distribution rate for VDC and XLP?

VDC currently distributes 2.04% and XLP 2.47%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is VDC or XLP better for dividend income?

It depends on your goals. XLP currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between VDC and XLP?

VDC (Vanguard Consumer Staples ETF) tracks MSCI US Investable Market Consumer Staples 25/50 Index, while XLP (State Street Consumer Staples Select Sector SPDR ETF) tracks Consumer Staples Select Sector Index. They are issued by Vanguard and State Street respectively.

Can I hold both VDC and XLP?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is VDC or XLP safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: XLP scores 91, VDC scores 89. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VDC or XLP?

VDC has an expense ratio of 0.09% while XLP charges 0.08%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in VDC vs XLP generate?

At current rates, $10,000 in VDC would generate roughly $51.00 cash per distribution ($204.00 annually). The same in XLP would produce about $61.75 cash per distribution ($247.00 annually).

Which has performed better historically, VDC or XLP?

VDC has lagged XLP over the trailing twelve months, posting a 12.99% total return against 14.43%. The picture flips over 10 years, though — VDC has compounded at 8.48% a year, ahead of XLP at 8.15%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VDC vs XLP — at a glance

Generated October 17, 2026.

Overview

VDC and XLP are both passively managed consumer staples ETFs designed to deliver low-cost exposure to defensive equity sectors. The key distinction is breadth: VDC tracks the broader MSCI US Investable Market Consumer Staples index, which captures the full market-cap range of staples companies, while XLP focuses on the 50 largest staples firms within the S&P 500. This structural difference affects both the companies they hold and their yield and volatility profiles.

How they differ

XLP holds only S&P 500 constituents, while VDC includes small- and mid-cap staples names outside the large-cap benchmark. This makes VDC's portfolio larger and more dispersed, whereas XLP concentrates on the sector's biggest players. XLP offers a slightly higher distribution yield of 2.47% compared to VDC's 2.04%, despite both paying quarterly dividends. XLP also carries a marginally lower expense ratio of 0.08% versus 0.09%, and has a larger asset base at $14.8B to VDC's $7.62B. Both ETFs have very similar betas—VDC at 0.5 and XLP at 0.48—reflecting the defensive nature of consumer staples equities overall.

Who each is best for

  • VDC: Fits investors seeking the broadest possible exposure to the consumer staples sector, including mid-cap and smaller holdings that may offer different growth or value characteristics than mega-cap staples alone.
  • XLP: Designed for investors who prefer the simplicity and liquidity of large-cap staples exposure and are comfortable limiting their holding to the S&P 500's most established consumer staples names.

Key risks to know

  • Index concentration: XLP's focus on the largest 50 S&P 500 staples names means performance is more heavily influenced by a smaller set of mega-cap holdings, whereas VDC's broader index spreads that concentration across a larger universe.
  • Sector cyclicality: Both funds carry material exposure to economic cycles, despite staples' "defensive" label. Discretionary spending can slow during recessions, pressuring valuations even for staples firms with pricing power.
  • Interest-rate sensitivity: Consumer staples stocks compete with bonds for income-seeking investors. Rising rates may pressure valuations, particularly for the higher-yielding, slower-growth names that dominate these sectors.
  • Dividend sustainability in downturns: While staples firms typically maintain dividends through cycles, severe recessions have historically forced cuts in the sector; the current yield assumes stable payout ratios.

Bottom line

If you want the broadest staples exposure across all market caps, VDC's size and diversification stand out; if you prefer the simplicity of large-cap-only exposure with a marginally higher yield and lower expense ratio, XLP's structure aligns with that preference. Both carry the defensive equity risk inherent to the sector—lower volatility comes paired with slower growth and rate sensitivity. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

How to read a fund's stats How expense ratios eat returns Correlation between two funds

Still deciding? Compare them against your own portfolio

See how each ETF fits alongside your real holdings — forecast future income, analyze overlap, and gauge risk. Start a free 7-day Dividend Vision trial and make the call with your full portfolio in view.

Start Free Open in Comparator Browse Screener

These comparisons follow the Dividend Vision methodology.