PSCC vs XLP

PSCCCInvesco S&P SmallCap Consumer Staples ETF

XLPAState Street Consumer Staples Select Sector SPDR ETF

In short

PSCC Most consumer staples ETFs are a stack of mega-cap giants. PSCC goes the other way, tracking the staples corner of the S&P SmallCap 600 (a couple dozen small US companies) for 0.29% a year.

XLP One of the original sector funds, live since December 1998. XLP is the S&P 500's staples aisle: roughly 40 makers of soap, soda, snacks and smokes, cap-weighted, for eight basis points.

Stated mandate

PSCC The Fund normally invests at least 90% of its assets in small-capitalization U.S. consumer staples companies included in its Index.

XLP The fund seeks to track, before expenses, the price and yield performance of the Consumer Staples Select Sector Index, representing U.S. consumer staples companies.

Why people hold it

• PSCC At 0.29% a year, it comes in under the typical fee in its consumer staples peer group, where the median sits closer to 0.40%.
• Small-cap purity: normally at least 90% of assets in small-cap US staples companies from its index, a slice the big cap-weighted staples funds barely touch.invesco.com
• Live since 2010, a long run for a slice this narrow, and it pays out on a quarterly schedule.

• XLP 0.08% a year against a peer-group median of 0.40%. In a slow-and-steady sector, that fee gap is one of the few things you actually control.
• Part of the first suite of sector ETFs launched in 1998, and still a multi-billion-dollar fund that trades very actively. Getting in and out is rarely the hard part.ssga.com
• Ties FSTA on fee and undercuts VDC, while holding strictly to S&P 500 members rather than a wider universe. Clean, literal exposure to the index's staples slice.ssga.com
• Among the strongest implementations in the staples cohort: broad mandate, quarterly distributions, no structural quirks buried in the wrapper.

Worth knowing

• PSCC Thinly traded with a small asset base, so spreads and market impact can matter as much as the fee you see on the label.
• Roughly two dozen holdings means one company's stumble moves the fund far more than it would in broad staples funds like XLP or VDC.
• Small-cap staples swing harder than the large-cap defensives most people picture when they hear 'consumer staples', and it sits in the lower half of its peer group.

• XLP About 40 names, market-cap weighted with index caps applied for diversification. The biggest retailers and household-product giants still carry outsized weight.spglobal.com
• U.S. only. Foreign staples heavyweights sit outside the mandate; KXI casts a global net, and RSPS spreads weight evenly instead of by size.
• This is one slice of the S&P 500, not a diversified core. Staples run on their own cycle and can drift far from the broad market for long stretches.

Full PSCC profile⁠

Full XLP profile⁠