FSTA vs. IYK: A Sector Showdown

The market’s a dirty business. Full of promises and usually delivering something less. Lately, I’ve been looking at two ETFs in the consumer staples sector – the Fidelity MSCI Consumer Staples Index ETF (FSTA 0.28%) and the iShares U.S. Consumer Staples ETF (IYK +0.01%). Both claim to offer a safe harbor. Safe harbors are always expensive, and this is no exception.

Let’s cut to the chase. The numbers. They’re like fingerprints, always telling a story if you bother to look. Here’s what I found:

Metric IYK FSTA
Issuer iShares Fidelity
Expense ratio 0.38% 0.08%
1-yr return (as of Jan. 25, 2026) 8.52% 7.13%
Dividend yield 2.61% 2.19%

FSTA, the newcomer, is playing it lean with that expense ratio. IYK’s got a bit more juice in the return and yield, but that extra cost… it’s like paying for a view you can’t quite see.

Risk? They both talk a good game about being defensive. The kind of funds you hide behind when the market throws a punch. The max drawdown over five years was a shade under fifteen percent for both, which, in this town, is practically a victory. FSTA grew a thousand bucks into thirteen-fifteen over five years. IYK managed eleven-seventy-one. Small differences. Like choosing between two shades of gray.

Now, what’s inside these things? FSTA’s a broad sweep, ninety-seven stocks dedicated to the staples game. Costco, Walmart, Procter & Gamble… the usual suspects. Those two retailers, Walmart and Costco, hold a hefty weight, over twenty-five percent of the ETF. A lot of faith in shopping habits.

IYK’s a bit more… selective. Fifty-eight stocks, and a ten percent detour into healthcare. A strange bedfellow for a ‘staples’ fund. Heavily weighted towards Procter & Gamble, Coca-Cola, and Philip Morris. Three kings holding all the cards. It’s like they’re betting on comfort and habit, and maybe a little bit of vice. The air in this market smells like desperation and cherry tobacco.

So, what does it all mean for you? Consumer staples aren’t going to make you rich overnight. They’re not about fireworks. They’re about keeping your head above water when the storm hits. These funds are built to be less volatile, to offer a bit of shelter. IYK had a good run in 2020, surging thirty percent. A lucky break in a rotten year.

Both are similar, but FSTA leans on retailers, while IYK prefers brands. IYK’s healthcare allocation is a distraction, a shiny object for those who can’t decide what they want. If you’re looking for a pure play on staples, either one will do. They’re both solid, like a worn-out pair of shoes.

For more on ETFs, there’s a link somewhere. I forget where. It’s a long road, this market. And most of the time, you’re just walking in circles.

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2026-01-26 21:58