GET DAILY SIGNALSIYK, RSPS, and VDC: Comparing Three Consumer Staples ETFs
Key Takeaways
- All three funds target the U.S. consumer staples sector, but their construction differs sharply: IYK is cap-weighted with a healthcare tilt, RSPS is equal-weighted, and VDC is a broad, low-cost cap-weighted index fund.
- Cost efficiency varies widely: VDC charges just 0.09%, while IYK (0.38%) and RSPS (0.40%) are roughly four times more expensive.
- Diversification depth differs materially, with VDC holding 100+ names, IYK around 54–58, and RSPS roughly 37–39 constituents.
- IYK carries the highest concentration risk, with its top 10 positions representing about two-thirds of assets, while RSPS deliberately neutralizes mega-cap dominance through equal weighting.
- RSPS rebalances quarterly and offers a higher distribution yield, but has lagged its peers on longer-horizon total returns and has the smallest asset base.
- Tickeron AI Verdict: VDC — the combination of lowest cost, deepest diversification, superior liquidity, and steadier risk-adjusted positioning favors Vanguard Consumer Staples ETF.
Introduction
Consumer staples ETFs often come into focus when investors look for defensive equity exposure that can weather different economic cycles. The three funds compared here — IYK, RSPS, and VDC — all operate in the same sector yet follow distinctly different strategies. One incorporates some non-staples exposure, another uses equal weighting to limit mega-cap influence, and the third delivers broad, cost-efficient cap-weighted coverage. Understanding these structural differences helps when assessing sector exposure, concentration risk, and relative positioning.
Looking at IYK
The iShares U.S. Consumer Staples ETF seeks to track the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index, which focuses on U.S. equities in the consumer staples sector. The fund holds roughly 54–58 stocks and carries an expense ratio of 0.38%. Its largest positions have historically included PG (Procter & Gamble), KO (Coca-Cola), PM (Philip Morris International), PEP (PepsiCo), and MCK (McKesson). A notable feature is its sector mix: roughly 85% of assets in consumer staples/defensive names, about 11% in healthcare, and a small allocation to materials. This makes IYK more concentrated in its top holdings than many peers and slightly less pure as a staples vehicle. I also checked this using Tickeron’s AI Screener to see how the fund compares to others in the industry.
Looking at RSPS
The Invesco S&P 500 Equal Weight Consumer Staples ETF seeks to replicate the S&P 500 Equal Weight Consumer Staples Index, which assigns roughly equal weight to every consumer staples company in the S&P 500. The fund holds approximately 37–39 stocks and charges 0.40%. It rebalances quarterly to maintain equal weighting, so no single mega-cap dominates — top positions such as WMT (Walmart), KR (Kroger), and PG (Procter & Gamble) each represent only around 3% of assets. The portfolio is almost entirely consumer defensive (about 97%) with a small consumer cyclical slice. This structure reduces single-stock risk relative to cap-weighted funds but tends to increase exposure to mid-sized staples names and carry a slightly higher dividend yield.
Looking at VDC
The Vanguard Consumer Staples ETF tracks the MSCI US Investable Market Consumer Staples 25/50 Index, offering broad coverage of large-, mid-, and small-cap U.S. staples companies. The fund holds 100+ names and charges a sector-leading 0.09% expense ratio. Its top positions are heavily weighted toward industry giants — WMT (Walmart) around 14%, COST (Costco) roughly 12%, and PG (Procter & Gamble) near 10% — followed by KO (Coca-Cola), PM (Philip Morris), and PEP (PepsiCo). The portfolio is approximately 98% consumer defensive with minimal cyclicals. VDC combines deep diversification, very low cost, and a large asset base, making it one of the most liquid vehicles in the category. From what I see, the low fee structure stands out as a clear advantage here.
Industry and Thematic Landscape
Consumer staples have been shaped by persistent inflation, shifting consumer spending toward essentials and value channels, and resilient demand for food, beverage, household, and personal-care products. Earnings trends among major holdings reflect pricing power but also volume pressure as households trade down. Regulatory scrutiny on tobacco and packaged foods, along with GLP-1 weight-loss drug adoption, has introduced longer-term demand questions for certain categories. Capital flows into defensive, low-beta sectors have strengthened as investors position for macroeconomic uncertainty and elevated interest rates. The sector's lower volatility and steady dividends remain attractive, but valuation compression and concentration in mega-cap names are key risks affecting all three funds' relative positioning.
Performance and Positioning Comparison
Over recent months and across the trailing one-to-five-year window, the three funds have diverged in ways that trace directly to their structure. VDC has generally delivered the strongest and most consistent total returns, aided by low fees, broad diversification, and heavy weightings in resilient giants like Walmart and Costco. IYK has shown comparable defensive characteristics but is held back by higher costs and concentration in tobacco and healthcare-adjacent names. RSPS, despite a higher yield, has lagged over longer horizons because its equal weighting tilts toward mid-sized staples companies and introduces a rebalancing dynamic that can dampen momentum. RSPS also exhibits modestly higher drawdowns and volatility relative to the cap-weighted peers, reflecting its smaller-cap skew and thinner liquidity. I’m watching this closely because the performance gap highlights how structural choices play out over time.
Exploring Tools for ETF Analysis
When comparing sector funds like these, I often turn to analytical platforms to cross-check metrics such as holdings overlap, expense ratios, and risk profiles. One resource that fits naturally into this process is Tickeron’s AI Screener, which helps filter ETFs and stocks based on technical patterns, fundamentals, and performance data. It has been useful for quickly surfacing comparable vehicles and refining sector-specific views without manual effort.
Tickeron AI Verdict
Based on observable structural strength, Tickeron's AI would currently favor VDC among the three. VDC combines the lowest expense ratio, the deepest diversification with 100+ holdings, the largest and most liquid asset base, and a steadier risk-adjusted profile than either IYK or RSPS. While IYK offers a defensive healthcare tilt and RSPS provides equal-weighted balance and a higher yield, both are constrained by higher fees, greater concentration or smaller-cap skew, and comparatively weaker long-horizon returns. On a probabilistic, risk-adjusted basis, VDC presents the most compelling structural and cost-efficient positioning in the current environment.
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