XLP

The Consumer Staples Select Sector SPDR Fund (XLP) is an exchange-traded fund that seeks to track the performance of an index composed of U.S. companies operating within the consumer staples sector. The ETF is managed by State Street Global Advisors and trades under the ticker XLP on NYSE Arca.

Classified as a sector-focused U.S. equity ETF, XLP aims to reflect, before fees and expenses, the performance of the securities included in its reference index.

The fund follows a passive management strategy, structuring its portfolio to replicate the composition and weighting methodology defined by the index provider. The Consumer Staples Select Sector Index consists of U.S. companies classified within the consumer staples sector according to established sector classification standards.

Constituents are weighted by float-adjusted market capitalization, assigning greater weight to the most representative companies in the sector. The index undergoes periodic reviews, including additions, removals, and rebalancing.

Diversification and sector exposure

XLP provides concentrated exposure to the U.S. consumer staples segment. The portfolio includes companies operating in areas such as:

• Food and beverage production.
• Personal care products.
• Household products.
• Consumer staples retail.
• Non-durable consumer goods.

This composition reflects the structure of the consumer staples sector within the U.S. equity market.

Structure and costs

XLP shares trade on the secondary market on NYSE Arca throughout the regular trading session. Creation and redemption of shares occur through authorized participants, helping maintain alignment between market price and net asset value.

The fund charges a management fee as specified in its prospectus and does not apply a performance fee. XLP distributes income derived from dividends paid by the companies held in its portfolio in accordance with its distribution policy.

History and evolution of the ETF

The Consumer Staples Select Sector SPDR Fund was launched in 1998 during a period of expansion in sector-focused exchange-traded funds in the United States.

Over time, XLP has become one of the primary vehicles for accessing the consumer staples sector, maintaining its passive replication strategy without changes to its investment policy.

In recent years, the ETF reflected the defensive characteristics of the consumer staples sector amid the pandemic, inflationary pressures, and U.S. interest rate tightening cycles, while preserving its established methodology and operational framework.