Key Points
FSTA offers a much lower expense ratio and greater diversification than FTXG.
FSTA has posted stronger recent returns and a shallower five-year drawdown.
FTXG yields slightly more but concentrates in fewer stocks and tilts toward food and beverage companies.
The Fidelity MSCI Consumer Staples Index ETF (NYSEARCA:FSTA) stands out for its lower expense ratio, broader portfolio, and recent performance, while the First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) is less diversified but offers a higher yield.
Both funds target the U.S. consumer staples sector, but they take different approaches. FSTA tracks a broad consumer staples index, while FTXG concentrates its portfolio on food and beverage companies. This comparison highlights cost, returns, risk, and portfolio differences to help clarify which may appeal more to investors seeking defensive sector exposure.
Snapshot (cost & size)
| Metric | FTXG | FSTA |
|---|---|---|
| Issuer | First Trust | Fidelity |
| Expense ratio | 0.60% | 0.084% |
| 1-yr return (as of 2026-03-24) | (2.43%) | 5.84% |
| Dividend yield | 2.82% | 2.26% |
| Beta | 0.54 | 0.63 |
| AUM | $18.6 million | $1.53 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
FSTA looks substantially more affordable with its 0.08% expense ratio compared to FTXG’s 0.60%, while FTXG edges out FSTA with a higher dividend yield.
Performance & risk comparison
| Metric | FTXG | FSTA |
|---|---|---|
| Max drawdown (5 y) | (21.68%) | (16.57%) |
| Growth of $1,000 over 5 years | $979 | $1,424 |
What's inside
FSTA tracks the performance of the MSCI USA IMI Consumer Staples Index, which holds 97 stocks with a strong tilt toward large, well-known consumer defensive companies. Its top holdings include Walmart(NASDAQ:WMT), Costco Wholesale(NASDAQ:COST), and Procter & Gamble(NYSE:PG). These stocks collectively make up over a third of the fund’s assets. The fund is over 12 years old, and its sector mix is 99.4% allocated to consumer staples.
FTXG focuses on the food and beverage industry, with 43% in food products, 27% in soft drinks, and 14% in fruit and grain processing stocks. It currently holds 31 stocks, led by Archer-Daniels-Midland Company(NYSE:ADM), Mondelez International (NASDAQ:MDLZ), and The Coca-Cola Company(NYSE:KO). FTXG’s more concentrated approach delivers a more targeted, but less diversified, exposure to this defensive corner of the market.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Consumer staples have outperformed the S&P 500 year to date, as there appears to be a rotation from technology to defensive stocks. Both FSTA and FTXG are up so far in 2026, but FSTA appears to be a more solid choice for long-term investors.
The only real advantage FTXG offers is its higher dividend yield. However, its higher yield is offset by its 0.6% expense ratio, which wipes out its yield advantage over FSTA.
FSTA is superior on several fronts. It is more broadly diversified across the consumer staples sector, offers a lower expense ratio, and has outperformed FTXG across multiple time frames.
Over the last 10 years, FSTA delivered a 110% total return, more than tripling FTXG’s return. It has also significantly outperformed over the past five- and one-year periods.
Importantly, FSTA has delivered superior gains with less volatility than FTXG, as evidenced by its lower five-year max drawdown of just 16%. Any way you slice it, FSTA is a superior ETF for investing in consumer defensive stocks.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.
