FSTA vs. VDC: Which Popular Consumer Staples ETF Is the Better Buy for Investors?
The Motley Fool
by newsfeedback@fool.com (Katie Brockman)February 14, 2026
AI-Generated Deep Dive Summary
Investors looking to add exposure to the U.S. consumer staples sector face a key decision when choosing between the Vanguard Consumer Staples ETF (VDC) and the Fidelity MSCI Consumer Staples Index ETF (FSTA). While both funds aim to track similar baskets of companies that produce essential goods, subtle differences in fees, yield, and portfolio structure can influence their appeal for different investors. Understanding these distinctions is crucial for those seeking to align their investment strategy with specific financial goals.
VDC, managed by Vanguard, offers a low expense ratio of 0.14%, making it one of the cheapest options in its category. Its focus on dividends has resulted in a higher yield compared to FSTA, which carries an expense ratio of 0.23%. These differences can significantly impact long-term returns, especially for investors prioritizing cost efficiency or income generation.
FSTA, on the other hand, offers a nearly identical portfolio composition to VDC, with both funds holding many of the same top companies like Procter & Gamble and Coca-Cola. However, FSTA’s slightly higher expense ratio may weigh on returns over time, particularly in low-growth environments where fees have a more noticeable impact.
For investors focused on maximizing returns while minimizing costs, VDC’s lower fees and strong dividend performance make it an attractive choice. Meanwhile, those willing to pay slightly more for FSTA may benefit from its potential for
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Originally published on The Motley Fool on 2/14/2026