Better Consumer Staples ETF: Vanguard's VDC vs. Invesco's RSPS
The Motley Fool
by newsfeedback@fool.com (Robert Izquierdo)February 14, 2026
AI-Generated Deep Dive Summary
The Vanguard Consumer Staples ETF (VDC) and the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS) both offer exposure to the consumer staples sector, but their approaches differ significantly. VDC is a larger fund with a lower expense ratio, tracking a broad, market-cap-weighted index that includes over 100 stocks. This means it gives more weight to bigger companies in the sector. On the other hand, RSPS uses an equal-weight strategy, assigning the same weight to each of its 37 S&P 500 consumer staples holdings, which can lead to different performance outcomes compared to VDC.
The key differences between these ETFs lie in their portfolio construction and cost structures. VDC’s market-cap weighting aligns it closely with the broader market, making it a more traditional choice for investors seeking sector exposure. Its lower expense ratio of 0.14% makes it a cost-effective option, especially for long-term investors. Meanwhile, RSPS charges a higher expense ratio of 0.43%, reflecting its equal-weight approach, which aims to reduce concentration risk by spreading investments evenly across all holdings.
For investors, the choice between VDC and RSPS depends on their investment goals and risk tolerance. While VDC may offer stability due to its market-cap weighting and lower costs, RSPS’s equal-weight strategy could potentially deliver higher returns over time by avoiding the dominance of a few large companies in the sector. Both ETFs provide valuable options for those looking to tap into the consumer staples industry, but their differing approaches make them suitable for different investment strategies.
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Originally published on The Motley Fool on 2/14/2026