GET DAILY SIGNALSFSTA vs IYK: Weighing Two Consumer Staples ETFs
Key Takeaways
- Both FSTA and IYK are passively managed, market-cap-weighted exchange-traded funds (ETFs) targeting U.S. consumer staples, but they track different indexes with meaningfully different portfolios.
- FSTA holds roughly 100 securities across the full market-cap spectrum, while IYK holds about 54 predominantly large-cap names, making FSTA the more diversified option.
- Cost is a decisive gap: FSTA carries a 0.08% expense ratio versus 0.38% for IYK.
- FSTA tilts toward mega-cap retail and distribution names, while IYK leans on branded consumer products and blends in healthcare distributors, giving it a less "pure" staples profile.
- Tickeron AI Verdict: FSTA is favored for its lower cost, broader diversification, and more consistent pure-play consumer staples exposure.
Why Compare These Two ETFs?
FSTA and IYK are two of the most widely held U.S. consumer staples ETFs, and they are natural competitors for the same investor dollar. Both seek to capture the defensive, non-cyclical demand of food, beverage, household-product, and tobacco companies, yet they arrive at that goal through different indexes and portfolio constructions. Comparing them is timely because defensive sector positioning has drawn renewed attention amid an uncertain macro backdrop. Understanding their structural differences—holdings, concentration, cost, and index methodology—helps investors judge which vehicle better matches their goals for sector exposure and relative positioning. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
FSTA: Broad Exposure to Consumer Staples
FSTA is a passively managed ETF that seeks to track the MSCI USA IMI Consumer Staples 25/50 Index, which spans nearly the entire U.S. consumer staples market across large, mid, and small capitalizations. The fund holds roughly 100 stocks, providing broad coverage rather than a narrow mega-cap-only basket. Its portfolio is overwhelmingly consumer defensive (typically around 97% or more), with only marginal exposure to consumer cyclical and other sectors.
Top holdings reflect a heavy retail and distribution tilt: WMT (Walmart) at roughly 14–15%, COST (Costco) at about 11–12%, and PG (Procter & Gamble) near 9%, followed by KO (Coca-Cola), PEP (PepsiCo), PM (Philip Morris), and MO (Altria). Its expense ratio is 0.08%, among the lowest in the category, and it rebalances in line with its market-cap-weighted index.
IYK: A More Concentrated Approach
IYK is a passively managed ETF that tracks the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index, which measures the consumer staples segment of the large-cap U.S. equity market. With roughly 54 holdings, it is a more concentrated portfolio dominated by mega-cap branded-goods companies. Its index applies concentration caps to limit single-stock weight.
Top holdings include PG at about 13.5%, KO near 12–13%, and PM around 11%, followed by PEP, MO, CVS (CVS Health), MCK (McKesson), MDLZ (Mondelez), CL (Colgate-Palmolive), and MNST (Monster Beverage). Notably, the presence of healthcare distribution names such as CVS and McKesson means healthcare represents roughly 11–13% of the portfolio, making it less of a pure staples fund. Its expense ratio is 0.38%.
The Consumer Staples Landscape Today
Consumer staples are prized as a defensive anchor because demand for food, beverages, household goods, and tobacco remains relatively stable across economic cycles. In the current environment, investors have weighed several forces: persistently elevated inflation and its impact on consumer purchasing power, pricing power among branded-goods giants, and the relative attractiveness of defensive sectors when growth-oriented equities look extended. Brand strength and pricing discipline at companies like Procter & Gamble and Coca-Cola support resilient margins, while retail giants Walmart and Costco benefit from trade-down behavior and value-seeking consumers. Key risks include input-cost pressures, evolving health-consciousness that pressures certain packaged-food and tobacco categories, and potential regulatory scrutiny. These dynamics affect both funds, but their different weightings determine how strongly each is exposed to them.
How They Stack Up in Performance and Risk
In recent market cycles, the two funds have generally moved in the same direction given their shared staples focus, but their relative positioning has diverged. FSTA's heavier weighting in Walmart and Costco has linked its returns more closely to retail distribution and warehouse-club momentum, which has been robust as consumers prioritize value. Meanwhile, IYK's concentration in branded consumer staples and its healthcare-distributor sleeve introduces a different earnings and valuation profile. From a risk standpoint, both funds exhibit low equity beta (a measure of sensitivity to the broad market) relative to the S&P 500, but FSTA's broader, less concentrated portfolio and its inclusion of mid- and small-cap names typically produce a somewhat different volatility signature than IYK's large-cap-heavy lineup. From what I see, this distinction matters when constructing a defensive sleeve.
Using AI Tools for ETF Analysis
When comparing ETFs like these, I often turn to Tickeron’s AI Screener to quickly filter holdings, costs, and sector exposures across thousands of options. It lets me scan for technical patterns, fundamentals, and performance metrics in one place, which helps refine ideas without spending hours on manual work. In this case, it confirmed the structural edges I noted above and highlighted how FSTA’s broader profile aligns with a low-cost defensive strategy. This kind of tool has become a regular part of my process for sector ETF decisions.
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 in upward trend: 10-day moving average broke above 50-day moving average on October 16, 2026
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 16 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 89%.
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%.
The Moving Average Convergence Divergence (MACD) for IYK just turned positive on October 07, 2026. Looking at past instances where IYK's MACD turned positive, the stock continued to rise in 37 of 44 cases over the following month. The odds of a continued upward trend are 84%.
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.
Following a +1.90% 3-day Advance, the price is estimated to grow further. Considering data from situations where IYK advanced for three days, in 265 of 337 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 39 similar instances where the indicator moved out of overbought territory. In 32 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 82%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 46 of 62 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 74%.
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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
Category ConsumerStaples
Advertisement