Comparison of Vanguard and Invesco Consumer Staples ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy IVZ?
Source: Yahoo Finance
- Fund Size and Costs: Vanguard's Consumer Staples ETF (VDC) boasts over $9.05 billion in assets under management (AUM) with an expense ratio of just 0.09%, while Invesco's Consumer Staples ETF (RSPS) has only $249.67 million in AUM and a higher expense ratio of 0.40%, making VDC more cost-effective for investors.
- Performance and Risk: As of February 4, 2026, VDC's one-year return stands at 11.5%, compared to RSPS's 14.5%; however, RSPS experiences a maximum drawdown of -18.60%, worse than VDC's -16.55%, indicating VDC's superior risk management.
- Portfolio Construction: VDC includes over 100 stocks weighted by market cap, offering broader industry coverage, while RSPS consists of only 37 stocks with an equal-weight strategy, giving smaller companies a larger role, which may influence investor preferences based on risk tolerance.
- Dividend Yield: RSPS offers a higher dividend yield of 2.63% compared to VDC's 2.10%, making it appealing for income-focused investors, although this is somewhat offset by its higher expense ratio, highlighting the trade-offs between income and cost in ETF selection.
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Analyst Views on IVZ
Wall Street analysts forecast IVZ stock price to rise
11 Analyst Rating
4 Buy
7 Hold
0 Sell
Moderate Buy
Current: 26.740
Low
25.00
Averages
28.68
High
33.50
Current: 26.740
Low
25.00
Averages
28.68
High
33.50
About IVZ
Invesco Ltd. is an independent investment management firm. It serves the retail and institutional markets within the investment management industry in the Americas, Europe, Middle East, and Africa and Asia-Pacific in 120 countries. It offers a range of investment strategies across asset classes, investment styles, and geographies. Its asset classes include equity, fixed income, balanced, alternatives and money market. Its retail assets under management include exchange-traded funds, separately managed accounts, individual savings accounts, investment companies with variable capital, investment trusts, open-end mutual funds, unit investment trusts, and variable insurance funds. Its institutional assets include institutional separate accounts, private funds, open-end mutual funds, and collective trust funds. Its client base includes public and private entities, unions, non-profit organizations, endowments, foundations, financial institutions, and sovereign wealth funds.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Portfolio Construction: VDC includes over 100 stocks weighted by market cap, offering broader industry coverage, while RSPS consists of only 37 stocks with an equal-weight strategy, giving smaller companies a larger role, which may influence investor preferences based on risk tolerance.
- Dividend Yield: RSPS offers a higher dividend yield of 2.63% compared to VDC's 2.10%, making it appealing for income-focused investors, although this is somewhat offset by its higher expense ratio, highlighting the trade-offs between income and cost in ETF selection.
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- Portfolio Adjustment: Trian Fund Management's latest 13F filing for Q4 2025 reveals an increase in stakes in major industrial and healthcare companies while trimming cyclical financial positions, indicating a cautious outlook on the economic landscape.
- Shift in Acquisition Strategy: Nelson Peltz hinted at a potential shift towards direct buyouts rather than traditional proxy fights, suggesting that this strategy could enable faster implementation of business strategies and enhance investment returns.
- Strong Performance of GE Aerospace: One of Trian's top bets, GE Aerospace, has benefited from robust demand in defense and commercial aviation, with strong order backlogs and ramped-up engine production, leading to a stock increase of over 55% in the past year, closing up 3.7% at $327.08.
- Market Trend Analysis: Benzinga's data indicates favorable price trends for GE Aerospace's stock across various time periods, along with strong Momentum and Quality rankings, reflecting sustained market confidence in the company's future prospects.
See More
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- Significant Acquisition Value: Nuveen's £9.9 billion acquisition of Schroders is set to create a global fund management giant with nearly $2.5 trillion in assets under management, marking a major consolidation trend in the asset management industry.
- Strong Market Reaction: The acquisition has sparked widespread discussion in the financial community, with many industry insiders expressing regret over Schroders' historical significance, reflecting deep concerns about the traditional asset management model.
- Accelerating Industry Consolidation: As profit margins for asset managers continue to contract due to a shift from active to passive management, the industry is witnessing an acceleration in merger activities aimed at achieving economies of scale and enhancing competitiveness.
- Uncertain Future Outlook: While the acquisition brings scale advantages, there is optimism about the rise of small boutique asset managers, which may offer more flexible services in long-term investments, potentially reshaping the industry landscape.
See More
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- Market Competitive Advantage: Morfit noted that BlackRock can reshape its image as merely an ETF manager through the Aladdin platform, leveraging technology integration to improve management efficiency and strengthen its competitive position against Vanguard, thereby solidifying its market presence.
- Industry Efficiency Issues: While Morfit acknowledged that his investment thesis might seem 'strange,' he emphasized the significant inefficiencies within the sector, creating a pressing need for a company to organize and streamline technology, with BlackRock's strengths in data and software positioning it well to address this need.
- Analyst Optimism: Despite BlackRock's shares dropping over 3% in February, most analysts maintain buy ratings, with expectations for the stock to rise over 23% in the next year, reflecting confidence in its long-term growth potential.
See More
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- Fund Size and Costs: Vanguard's Consumer Staples ETF (VDC) boasts over $9.05 billion in assets under management (AUM) with an expense ratio of just 0.09%, while Invesco's Consumer Staples ETF (RSPS) has only $249.67 million in AUM and a higher expense ratio of 0.40%, making VDC more cost-effective for investors.
- Performance and Risk: As of February 4, 2026, VDC's one-year return stands at 11.5%, compared to RSPS's 14.5%; however, RSPS experiences a maximum drawdown of -18.60%, worse than VDC's -16.55%, indicating VDC's superior risk management.
- Portfolio Construction: VDC includes over 100 stocks weighted by market cap, offering broader industry coverage, while RSPS consists of only 37 stocks with an equal-weight strategy, giving smaller companies a larger role, which may influence investor preferences based on risk tolerance.
- Dividend Yield: RSPS offers a higher dividend yield of 2.63% compared to VDC's 2.10%, making it appealing for income-focused investors, although this is somewhat offset by its higher expense ratio, highlighting the trade-offs between income and cost in ETF selection.
See More
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- Stock Performance: Invesco's recent closing price is $26.53, with declines of 2.3%, 1.5%, and 1.5% over the past 7 days, 30 days, and year-to-date respectively, despite a 50.6% increase over the past year, indicating potential risks that could affect investor confidence.
- Valuation Assessment: The Excess Returns model estimates Invesco's intrinsic value at $11.31 per share, suggesting a significant overvaluation of 134.5% compared to the current stock price, which may prompt investors to reassess their investment strategies.
- Price-to-Sales Analysis: Invesco's P/S ratio stands at 1.85x, below the capital markets industry average of 4.12x and peer average of 3.36x, indicating a more conservative pricing in the market that could attract value-seeking investors.
- Future Outlook: The Narratives tool allows investors to dynamically adjust their valuation expectations for Invesco based on the latest information, providing flexibility that may help them seize market opportunities, even though current valuations indicate certain risks.
See More
U.S. ETF Industry Faces Potential Distribution Fee Changes
- Emerging Distribution Fees: U.S. brokerage firms and custodians may soon impose distribution fees on ETF managers, potentially reshaping the cost structure of the $13.5 trillion U.S. ETF industry, particularly after over a decade of zero-commission trading that has disrupted traditional revenue streams.
- Impact of Zero-Commission Trading: Companies like Robinhood have attracted millions of retail investors with zero trading commissions, forcing traditional brokers like Fidelity and Charles Schwab to eliminate ETF trading fees, which, while retaining clients, has significantly impacted their profitability.
- Changing Cost Structure: J.P. Morgan estimates that the current U.S. ETF management fee pool is around $21 billion, and if intermediaries capture 10% to 20% of ETF expense ratios, the industry could incur an additional $2 billion to $4 billion in distribution costs annually, affecting investor returns.
- Market Competitive Landscape: Large ETF issuers may be better positioned under this new fee structure, while mid-sized firms could face greater pressure, particularly niche and actively managed ETFs that may be the first to feel the impact, potentially halting the decline in their expense ratios.
See More
