GET DAILY SIGNALSComparing IYK, KXI, and VDC: Consumer Staples ETFs Head-to-Head
Key Takeaways
- IYK and VDC are U.S.-only funds, while KXI adds global diversification across roughly 95 holdings and multiple developed markets.
- VDC is the clear cost leader at 0.09%, versus approximately 0.38% for both IYK and KXI.
- IYK carries a structural quirk: meaningful healthcare exposure (about 12–13%) through names like CVS Health and McKesson, making it less "pure" consumer staples.
- KXI spreads single-country and currency risk but includes multinationals such as Nestlé, Unilever, and British American Tobacco.
- VDC offers the deepest diversification depth (roughly 104 holdings) and the largest liquidity pool of the three.
- Tickeron AI Verdict: VDC ranks highest on cost efficiency, diversification, liquidity, and risk-adjusted positioning.
Why These Consumer Staples ETFs Matter
Consumer staples exchange-traded funds (ETFs) attract investors seeking defensive, dividend-oriented exposure that tends to hold up better through economic slowdowns. These three funds—IYK, KXI, and VDC—sit in the same sector category but represent meaningfully different construction choices: two track U.S.-only indexes, one spans global developed markets, and their fee structures and holdings counts diverge sharply. Comparing them clarifies whether investors prioritize cost, breadth, geographic reach, or thematic purity. The differences are structural rather than superficial, making this a useful ETF comparison for both retail and professional allocators. I also checked this using Tickeron’s AI Screener to see how the funds compare to others in the industry.
A Closer Look at IYK
IYK is a passively managed fund that tracks the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index, an index of U.S. consumer staples equities. It holds roughly 54 securities and charges a net expense ratio of about 0.38%. Top positions include Procter & Gamble (≈13.6%), Coca-Cola (≈12.2%), Philip Morris International (≈10.8%), PepsiCo (≈7.7%), and CVS Health (≈5.2%). Its sector allocation is roughly 55–58% food, beverage and tobacco, about 21–23% household and personal products, and a notable 12–13% in healthcare equipment and services—plus a small materials slice. This healthcare and materials tilt stems from the fund's historical "consumer goods" mandate, making IYK a concentrated, slightly less pure staples vehicle with a low beta (around 0.3–0.5).
A Closer Look at KXI
KXI tracks the S&P Global 1200 Consumer Staples (Sector) Capped Index, providing exposure to global consumer staples equities rather than U.S. names alone. It holds roughly 95 securities and charges a net expense ratio near 0.38%. Leading holdings include Walmart (≈7–9%), Costco Wholesale (≈6–8%), Procter & Gamble (≈5–6%), Coca-Cola (≈4.5–5%), and Philip Morris International (≈4.5–5%), alongside Nestlé, Unilever, and British American Tobacco. Sector exposure is about 97% consumer defensive with a small consumer cyclical component. Geographically, the U.S. represents roughly 57–59% of assets, followed by the United Kingdom, Japan, Switzerland, and France. This geographic breadth adds currency and regional diversification but also introduces foreign-exchange sensitivity absent from the two U.S.-only funds.
A Closer Look at VDC
VDC tracks the MSCI US Investable Market Consumer Staples Index, a market-capitalization-weighted benchmark spanning U.S. consumer staples of all sizes. It holds roughly 104 securities and charges a net expense ratio of just 0.09%, the lowest of the trio. Top positions include Walmart (≈14–14.5%), Costco Wholesale (≈11.4–12%), Procter & Gamble (≈8.8–10%), Coca-Cola (≈8–9.7%), and Philip Morris International (≈4.4–4.9%). Sector allocation is about 98% consumer staples with a minimal consumer cyclical slice. Because it is market-cap weighted, the top three names anchor roughly one-third of assets, yet the wider holdings count (including Target, Mondelez, and Colgate-Palmolive) provides broader diversification than IYK.
The Consumer Staples Sector Landscape
All three funds operate within the consumer staples universe, whose earnings are driven by pricing power, brand strength, and volume resilience rather than discretionary demand. Recent market cycles have featured persistent inflation pressures, uneven consumer spending, and currency headwinds for multinationals—factors that affect each fund differently. U.S.-focused funds benefit from domestic pricing trends, while globally diversified KXI is more exposed to foreign-exchange swings and regional consumption softness, particularly in Europe and Japan. Elevated input costs and changing health-conscious consumer preferences remain structural risks across food, beverage, tobacco, and household products. Regulatory scrutiny of tobacco and packaging, along with GLP-1 weight-loss drug adoption potentially reducing snack consumption, represent longer-term thematic concerns for the sector's largest constituents.
Performance and Positioning Comparison
In recent weeks and months, all three funds have exhibited the defensive, low-volatility character typical of consumer staples, though their relative positioning differs. VDC's cost advantage and broad but mega-cap-heavy portfolio have generally supported steadier, more consistent returns with modest drawdowns. IYK, with its concentrated top positions and healthcare overlay, has shown slightly different sensitivity to macro factors—its healthcare names can diverge from pure staples trends. KXI's global reach has introduced greater variability from currency movements and overseas equity performance, making its return path somewhat less aligned with U.S. staples benchmarks. Concentration risk is highest in IYK (top 10 near two-thirds of assets), while VDC balances breadth with its mega-cap tilt. These structural differences—not short-term price moves—explain most performance gaps. From what I see, this is important because it highlights how construction choices drive outcomes over time.
Using Tickeron’s AI Tools for ETF Analysis
Tickeron’s AI Screener has become a regular part of my process when evaluating sector ETFs like these. It lets me apply technical patterns, fundamentals, and AI-driven signals to quickly compare holdings, costs, and risk metrics across dozens of similar funds. I find it especially helpful for spotting relative strengths in diversification and liquidity without spending hours on manual screens.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
IYK's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for IYK turned positive on October 07, 2026. Looking at past instances where IYK's MACD turned positive, the stock continued to rise in 38 of 44 cases over the following month. The odds of a continued upward trend are 86%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on IYK as a result. In 70 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 80%.
IYK moved above its 50-day moving average on October 08, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for IYK crossed bullishly above the 50-day moving average on October 16, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 72%.
Following a +2.27% 3-day Advance, the price is estimated to grow further. Considering data from situations where IYK advanced for three days, in 265 of 336 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
The Aroon Indicator entered an Uptrend today. In 232 of 299 cases where IYK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.
Bearish Trend Analysis
The 10-day RSI Indicator for IYK moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In 30 of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at 79%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 43 of 61 cases where IYK's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 70%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IYK declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 75%.
IYK broke above its upper Bollinger Band on October 14, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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