The Steady Hand & The Wider Field

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There are funds, like quiet rivers, that run deep within the borders of a single land. And then there are those that cast their nets wide, seeking sustenance from a hundred shores. The iShares US Consumer Staples ETF (IYK 0.46%) and the iShares Global Consumer Staples ETF (KXI 0.14%) – both seek the same harvest, the everyday needs of folks, but they go about it in different ways. One, a familiar garden, the other, a vast, untamed field.

Folks put their hard-earned coin into these funds looking for a bit of shelter, a place where the market’s storms don’t hit quite so hard. These are the staples, the things people will buy even when times are lean – a loaf of bread, a bit of soap, a cup of coffee. IYK, it keeps its roots firmly planted in American soil. KXI, it sends runners out across the globe, testing the ground in distant lands. It’s a difference of focus, a choice between the known and the far-flung.

A Measure of Things

Metric IYK KXI
Issuer iShares iShares
Expense ratio 0.38% 0.39%
1-yr return (as of 2026-01-09) 6.2% 11.2%
Dividend yield 2.7% 2.2%
AUM $1.2 billion $908.7 million

The cost of keeping these funds afloat is nearly the same – a small price to pay for a share of the harvest. IYK offers a slightly richer payout for those who live on the yield, a steady trickle of income. But the real story isn’t in the numbers alone; it’s in where those numbers come from.

The Wind and the Roots

Metric IYK KXI
Max drawdown (5 y) -15.04% -17.43%
Growth of $1,000 over 5 years $1,139 $1,136

Over the long haul, a thousand dollars planted in either field grows to roughly the same size. But the journey is different. KXI, reaching for more distant shores, has known deeper dips, harsher winds. IYK, sheltered within familiar borders, has had a smoother ride, a gentler slope.

What Lies Within

KXI holds ninety-six different crops, grown in fields around the world. You’ll find the familiar faces – Walmart, Costco, Philip Morris – alongside names less known to American ears. It’s a portfolio that leans heavily towards the things people need, the staples that see them through hard times. Ninety-seven percent defensive, they call it. A small tilt towards the things folks want when they have a little extra to spend.

IYK, it’s a more concentrated garden, fifty-four holdings, rooted firmly in American soil. Procter & Gamble, Coca-Cola, Philip Morris – these are the giants that have fed generations. It, too, leans towards the defensive, but it also casts a wider net, including a bit of healthcare and basic materials. A slightly broader mix within the borders of a single nation.

There’s a wisdom in knowing where your seeds are planted. And a risk, too. The world is a changing place, and relying too heavily on a single garden can leave you vulnerable when the seasons turn harsh.

What This Means for Those Who Sow

Both IYK and KXI are well-tended fields, offering a measure of stability in a world often given to wild swings. They’re nearly the same in cost, and their recent performance has been remarkably similar. But the differences, subtle as they may be, are worth considering.

IYK, with its higher dividend yield, might appeal to those who seek a steady income, a reliable harvest to see them through lean times. And for those who believe in the strength of the American consumer, it offers a concentrated bet on a familiar landscape.

KXI, with its wider reach, might appeal to those who seek diversification, a hedge against the risks of relying too heavily on a single nation. It’s a bet on the global consumer, a belief that the need for staples will endure, no matter where you are on the map.

In the end, the choice is a personal one. It depends on your beliefs, your risk tolerance, and your vision of the future. There’s no single answer, no easy path. Only the careful consideration of the land, the seeds, and the winds that will shape the harvest.

A Glossary for the Field

ETF: Exchange-traded fund, a basket of securities that trades on an exchange like a stock.
Consumer staples sector: Companies selling essential everyday products, such as food, beverages, and household goods.
Defensive sector: Industry group that tends to be less sensitive to economic cycles, often providing more stable returns.
Diversification: Spreading investments across many holdings to reduce the impact of any single position’s performance.
Expense ratio: Annual fund fee, expressed as a percentage of assets, covering management and operating costs.
Dividend yield: Annual dividends per share divided by the share price, showing income return percentage.
Total return: Investment performance including price changes plus all dividends and distributions, assuming reinvestment.
Beta: Measure of an investment’s volatility relative to the overall market, typically compared with the S&P 500.
Assets under management (AUM): Total market value of all assets that a fund or manager oversees.
Max drawdown: Largest peak-to-trough decline in value over a specific period, showing worst historical loss.
Consumer defensive: Another term for consumer staples; companies providing essential goods that people buy regardless of the economy.
Consumer cyclicals: Companies selling non-essential goods and services whose demand typically rises and falls with the economy.

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2026-01-17 22:43