What Is the FSTA ETF? Returns, Expense Ratio, Holdings, and Alternative ETFs Explained
Offers low-cost diversified exposure to the entire US consumer staples sector, with defensive characteristics and stable dividend income.
SubscribeWhat Is This ETF?
The fund tracks the MSCI USA IMI Consumer Staples 25/50 Index, holding US consumer staples companies across the large-, mid-, and small-cap spectrum. Through an index methodology designed to prevent any single company's weighting from becoming excessive, it aims for balanced exposure within the sector.
It suits investors who want to reduce portfolio volatility amid recession concerns, or who want to invest in high-quality stocks that pay steady dividends backed by stable earnings.
Launched by Fidelity in 2013, this is a passively managed (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked index | MSCI USA IMI Consumer Staples 25/50 Index |
| Management style | Passive (sampling replication) |
| Rebalancing frequency | Quarterly |
| Dividend frequency | Quarterly |
| Total expense ratio | 0.08% |
By selecting the most representative stocks among the index constituents, the fund faithfully replicates the index's performance. The portfolio is built around industry-leading giants such as Walmart, Costco, and Procter & Gamble, pursuing growth and returns across the sector.
- One of the lowest expense ratios in the industry
- Broad consumer staples sector exposure spanning large caps to small caps
Size and Costs
Assets under management (AUM) stand at $1.5B, and the total expense ratio is 0.08% per year.
Compared with competing products such as XLP, VDC, and IYK shown in the table, it keeps fees at a nearly identical low level while combining that with the accessibility advantages of the Fidelity platform.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeEven under inflationary pressure, companies with pricing power over essential consumer goods have delivered solid results. Whenever concerns about an economic slowdown grow, safe-haven demand has helped the fund post relatively strong returns.
Capital seeking to build defensive portfolios continues to flow in during periods of high interest rate volatility and macroeconomic uncertainty, and long-term investors who expect stable dividend income remain interested.
Strengths and Weaknesses
Its defensive portfolio centered on high-quality companies and its industry-low fees are strengths, but in bull markets its returns may lag the market average.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
Leading alternatives for investing in the US consumer staples market include XLP and VDC. If you want to focus more on dividend growth, it is also a good strategy to consider VIG or NOBL alongside it. If you want to broaden your view to consumer staples companies worldwide, you could consider KXI as an alternative. It is important to check the differences in detailed weightings and fees for each product and choose according to your investment style.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 XLP | State Street Consumer Staples Select Sector SPDR ETF | $86.84 | -0.4% | $14.6B | 0.08% | 2.53% | +10.7% |
 VDC | Vanguard Consumer Staples ETF | $235.90 | -0.3% | $7.9B | 0.09% | 2.07% | +10.3% |
 IYK | iShares U.S. Consumer Staples ETF | $76.12 | -0.4% | $1.3B | 0.37% | 2.48% | +10.8% |
 RSPS | Invesco S&P 500 Equal Weight Consumer Staples ETF | $30.75 | -0.5% | $247.9M | 0.40% | 2.88% | +4.5% |
 FXG | First Trust Consumer Staples AlphaDEX Fund | $60.72 | -0.6% | $207.8M | 0.63% | 2.07% | -3.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| WMT | Walmart Inc | 0.30% | $118.77 | -0.5% | $942.3B | 43.0 | 0.84% |
| COST | Costco Wholesale Corp | 0.24% | $982.73 | -0.9% | $435.5B | 47.3 | 0.59% |
| PG | Procter & Gamble Co | 0.18% | $158.26 | -0.6% | $366.8B | 23.9 | 2.77% |
| KO | Coca-Cola Co | 0.08% | $91.73 | +0.6% | $394.7B | 27.0 | 2.4% |
 COKE | Coca-Cola Consolidated Inc | 0.08% | $210.32 | +1.8% | $14.0B | 28.8 | 0.48% |
| PM | Philip Morris International Inc | 0.05% | $202.64 | +0.0% | $315.8B | 29.6 | 3% |
| PEP | PepsiCo Inc | 0.05% | $132.63 | -0.7% | $180.7B | 16.7 | 4.41% |
Investor Checkpoints
Here is a checklist of key items to review before investing in the Fidelity MSCI Consumer Staples Index ETF (FSTA). You should analyze closely the characteristics of a defensive asset and the sector's concentration.
| Checkpoint | What to check | Current status |
|---|---|---|
| 💵 Fee level | Whether the industry-low management cost is maintained | Top tier |
| 📦 Top holdings concentration | Check the weightings of major giants such as Walmart and PG | Fairly high |
| 📈 Economic cycle | Check whether the current macroeconomic environment favors defensive stocks | Favorable for defensives |
| 💰 Dividend yield | Whether regular dividends are paid at the level you expect | Holding steady |
The consumer staples sector is stable, but explosive growth is hard to expect. In particular, opportunity costs can arise in high-growth markets, so an approach from an asset allocation perspective is needed.
It is an efficient vehicle for investing in high-quality US consumer staples companies at low cost. It is an asset worth recommending to conservative investors who want to reduce portfolio volatility and earn steady income.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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