FSTA vs FTXG: A Matter of Staples (and Improbability)

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So, you’re considering investing in things people will always need, even when the robots finally decide they’ve had enough? Sensible. Relatively. We’re looking at two Exchange Traded Funds: the Fidelity MSCI Consumer Staples Index ETF (FSTA +1.30%) and the First Trust Nasdaq Food & Beverage ETF (FTXG +1.36%). Both, in their own way, attempt to bottle the enduring human need for… well, things. One casts a wider net, encompassing all manner of household necessities. The other, rather focused, deals specifically with what goes in people. (Which, when you think about it, is a remarkably narrow definition of existence.)

This comparison, therefore, is not merely about returns and risk, but about the fundamental absurdity of attempting to predict the future of biscuit consumption. (And laundry detergent. Don’t forget the laundry detergent.)

Snapshot (Cost & Size – or, How Much Does it Cost to Worry?)

Metric FTXG FSTA
Issuer First Trust Fidelity
Expense ratio 0.60% 0.08%
1-yr return (as of Jan. 29, 2026) -1.54% 4.29%
Dividend yield 2.94% 2.24%
Beta (5Y monthly) 0.44 0.55
AUM $16.7 million $1.3 billion

FSTA, it seems, is significantly less interested in extracting wealth from your investment than FTXG. A mere 0.08% expense ratio. It’s almost… charitable. (One suspects a hidden agenda involving long-term brand loyalty. Everything has a price.) FTXG, however, offers a slightly more generous dividend yield. Which is nice, if you’re planning on using the proceeds to build a small, fortified bunker. (Because, let’s be honest, that’s where this is all heading.)

Performance & Risk Comparison (Or, How Much Could You Lose?)

Metric FTXG FSTA
Max drawdown (5 y) -21.68% -16.57%
Growth of $1,000 over 5 years $907 $1,311

Over five years, FSTA has apparently managed to preserve more of your initial investment. FTXG, meanwhile, has demonstrated the inherent volatility of the snack food industry. (Who knew potato chips were so… unpredictable?) Of course, past performance is no guarantee of future results. (It’s a disclaimer. We have to say it. It’s the law. And the lawyers are very expensive.)

What’s Inside (The Ingredients List of Your Investment)

FSTA, aiming to mirror the MSCI USA IMI Consumer Staples 25/50 Index, is a broad church of consumer goods. Ninety-six holdings, to be precise. It’s heavily weighted towards household names – Costco, Walmart, Procter & Gamble – comprising nearly 37% of its assets. It’s a comforting level of familiarity. (Like a slightly stale biscuit.) With over 12 years of history, FSTA allocates 98% to consumer defensive stocks and a tiny fraction to consumer cyclical. It’s as if they’re actively avoiding anything remotely interesting.

FTXG, by contrast, is a far more focused affair. Thirty holdings, targeting the Nasdaq US Smart Food & Beverage Index. Its top three stocks – Archer-Daniels-Midland, PepsiCo, and Mondelez International – account for over 23% of assets. It’s a concentrated bet on the continued human desire for sugary drinks and processed snacks. (A surprisingly safe investment, when you think about it.)

There are no hidden quirks or extra screens in either fund. They’re remarkably straightforward. (Which, in the world of finance, is deeply suspicious.)

For more guidance on ETF investing, check out the full guide at this link. (We are not responsible for any existential crises resulting from said guide.)

What This Means for Investors (Or, Why Are We Even Doing This?)

Consumer staples stocks are, generally, considered a safe haven during economic turbulence. People will always need toilet paper, even when the world is ending. (It’s a grim thought, but a profitable one.) A consumer defensive ETF is a simple way to tap into this sector. (Though “simple” is a relative term. Everything is terrifyingly complex if you look at it long enough.)

FSTA, with its broader portfolio, offers more diversification. FTXG, with its narrower focus, offers… well, a more focused approach. It’s a subtle difference, but potentially significant. (Like the difference between a slightly damp biscuit and a perfectly crisp one.)

Over the last five years, FSTA has delivered higher total returns with lower volatility. It also boasts a much lower expense ratio. (Which, let’s be honest, is the only thing anyone really cares about.)

Neither ETF is necessarily “better.” They simply offer different approaches to the consumer staples sector. If you crave diversification, FSTA is the way to go. If you’re a purist, focused on the essential building blocks of human existence (food and beverages), FTXG might be more your style. (Just don’t blame us when the robot uprising inevitably occurs.)

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2026-02-02 02:03