What Is the IYK ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
This ETF invests in a concentrated portfolio of high-quality US consumer staples stocks. It is characterized by its defensive nature and stable dividend income.
SubscribeWhat Is This ETF?
It tracks the Russell 1000 Consumer Staples Index and invests in large-cap US consumer staples companies. Its holdings are companies with business models built on essential goods, where demand holds up even during recessions, which makes the fund well suited to building a defensive portfolio.
It suits investors who want to increase their allocation to stable defensive stocks in preparation for market volatility and who are looking for steady dividend income.
It is a passively managed (index-tracking) ETF launched in 2000 by BlackRock (iShares).
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | Russell 1000 Consumer Staples Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Expense Ratio | 0.37% |
It uses a market-cap-weighted approach, but applies a capping strategy so that the weight of any single stock does not grow excessively large. This lets the fund focus on top-quality names while still maintaining a minimum level of diversification.
- Long operating history and a proven track record
- Sector exposure that includes some healthcare-related consumer goods companies
Size and Costs
Assets under management (AUM) stand at $1.4B, and the expense ratio is 0.37% per year.
Its fee is somewhat higher than that of similar ETFs, but differences in how the tracked index is constructed give it a slightly different sector exposure.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThanks to brand power that allows companies to pass costs on to customers, the fund has delivered stable performance even in inflationary environments, and it tends to show relative strength when market uncertainty rises.
Whenever recession fears come to the fore, risk-averse money tends to flow in, and combined with the dividend growth theme, the fund is popular with long-term investors.
Strengths and Weaknesses
Its strength is a stable portfolio centered on high-quality brands, but it may post relatively weak returns when growth stocks lead the market.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
XLP, VDC, and FSTA shown in the table are leading competing products that offer lower fees within the same consumer staples category. If you want to focus more on a specific food and beverage segment, PBJ is a good alternative, and if you want to widen your view beyond the US to consumer goods companies worldwide, KXI is also an excellent option. If you prefer an equal-weighted approach, consider RSPS as well.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 XLP | State Street Consumer Staples Select Sector SPDR ETF | $89.42 | +1.4% | $14.8B | 0.08% | 2.46% | +16.9% |
 VDC | Vanguard Consumer Staples ETF | $242.32 | +1.4% | $8.0B | 0.09% | 2.01% | +16.0% |
 FSTA | Fidelity MSCI Consumer Staples Index ETF | $56.48 | +1.4% | $1.5B | 0.08% | 2.09% | +15.9% |
 RSPS | Invesco S&P 500 Equal Weight Consumer Staples ETF | $31.53 | +1.4% | $248.1M | 0.40% | 2.81% | +10.3% |
 FXG | First Trust Consumer Staples AlphaDEX Fund | $61.83 | +1.4% | $207.2M | 0.63% | 2.04% | +0.4% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| PG | Procter & Gamble Co | 0.26% | $161.57 | +0.6% | $374.5B | 24.4 | 2.72% |
| KO | Coca-Cola Co | 0.13% | $94.08 | +1.4% | $404.7B | 27.7 | 2.34% |
 COKE | Coca-Cola Consolidated Inc | 0.12% | $210.30 | +0.5% | $14.0B | 28.8 | 0.48% |
| PM | Philip Morris International Inc | 0.22% | $208.79 | +0.1% | $325.4B | 30.5 | 2.92% |
| PEP | PepsiCo Inc | 0.16% | $137.34 | +2.6% | $187.2B | 17.3 | 4.26% |
| MO | Altria Group Inc | 0.05% | $78.03 | +1.7% | $130.3B | 16.1 | 5.54% |
| CVS | CVS Health Corp | 0.05% | $90.25 | -0.1% | $115.4B | 23.8 | 3.02% |
Investor Checkpoints
This is a key checklist to review before making an investment decision on IYK. You should weigh its defensive nature and cost efficiency together and reflect them appropriately in your own portfolio.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Cost Efficiency | Compare the fee gap against competing ETFs | Somewhat higher fee |
| 🛡️ Defensive Strength | Price movement when market volatility rises | Strong defensiveness |
| 💰 Dividend Yield | Past dividend history and current yield | Stable level |
| 📊 Sector Concentration | Check concentration in top holdings | Large top weightings |
The low-growth trend of the consumer staples industry and margin pressure from rising costs are long-term risk factors. You should also recognize that changes in the interest rate environment can directly affect the share price.
It can serve as a leading vehicle for US consumer staples exposure for investors who place importance on stable cash flow and defensive strength, and it deserves consideration from a long-term asset allocation perspective.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
Today's 5 AI picks, all free