The State Street Consumer Staples Select Sector SPDR Premium Income ETF (NYSEARCA: XLSI), launched in July 2025, aims for dividend distributions through an active management strategy combined with an overlayed call options approach. It currently boasts a dividend yield of 8.9% but has managed assets of less than $3 million, leading to concerns about liquidity.
Another option, the First Trust Consumer Staples AlphaDEX Fund (NYSEARCA: FXG), employs a quant-screened methodology to provide exposure to around 40 holdings and has a year-to-date (YTD) increase of 7%. It offers a dividend yield of 2.7% and has significantly higher assets of over $250 million, although it carries a higher expense ratio of 0.63%.
The largest fund on this list, the Vanguard Consumer Staples ETF (NYSEARCA: VDC), has $8 billion in managed assets and an expense ratio of only 0.09%. It has returned 8% YTD and pays a dividend yield of 2.1%, making it a strong contender due to its combination of performance, low fees, and liquidity.
