IYK vs. KXI: Performance Metrics and International Diversification Tell Different Stories

Breaking Down the Numbers

When comparing the iShares US Consumer Staples ETF (IYK) and iShares Global Consumer Staples ETF (KXI), the first question investors ask is: which one performs better? The answer isn’t straightforward. Over the past year through January 2026, KXI has pulled ahead with an 11.2% return compared to IYK’s 6.2%. However, when examining longer timeframes, the gap narrows significantly. Both funds generated roughly $1,136-$1,139 from a $1,000 investment over five years, showing nearly equivalent performance on an extended basis.

The trade-off emerges when analyzing volatility. KXI experienced a steeper five-year maximum drawdown of -17.43%, versus IYK’s -15.04%. This means global exposure came with slightly greater downside risk during market corrections.

Cost Structure and Income Generation

The expense ratios for both funds are virtually identical, with KXI charging 0.39% annually and IYK at 0.38%. For most investors, this 0.01% difference is negligible and shouldn’t factor significantly into the decision-making process.

The income story favors IYK, which offers a 2.7% dividend yield compared to KXI’s 2.2%. For yield-focused portfolios, that 50-basis-point advantage compounds meaningfully over time. KXI manages approximately $908.7 million in assets, while IYK oversees a larger $1.2 billion, suggesting stronger investor confidence in the U.S.-focused approach.

Portfolio Composition: Depth vs. Breadth

KXI operates with significantly more granularity, holding 96 consumer staples equities across global markets. This broader approach includes leading names like Walmart Inc., Costco Wholesale Corp., and Philip Morris International Inc., while extending reach to international heavyweights such as Nestlé and Unilever. The fund allocates 97% toward defensive consumer positioning with minimal exposure to cyclical segments.

IYK takes a more concentrated approach with just 54 holdings, predominantly U.S.-listed companies. Top positions include Procter & Gamble, Coca-Cola, and Philip Morris International. Interestingly, IYK’s allocation includes modest exposure to healthcare and basic materials sectors, creating a slightly more diversified flavor within the consumer staples umbrella—albeit confined to American equities.

The Core Trade-Off: Geography vs. Income

The fundamental distinction boils down to geographic exposure. Investors prioritizing U.S. market participation, particularly those seeking consistent income, find IYK more aligned with their objectives. The higher yield and concentrated exposure to established American consumer brands offer familiarity and steady cash returns.

Conversely, KXI appeals to globally-minded investors seeking to diversify beyond U.S. borders. With nearly twice the number of holdings and meaningful international representation, KXI provides insulation against domestic-only risks. Recent performance supports this thesis—KXI’s superior one-year return reflects international market strength.

Making the Choice

For income investors with a domestic focus, IYK represents the better option. Its yield premium and concentrated portfolio of recognizable U.S. staples companies create a straightforward value proposition.

For those seeking international diversification and willing to accept slightly lower current yield in exchange for broader global coverage, KXI warrants serious consideration. The fund’s 96-position structure and inclusion of non-U.S. consumer stalwarts like Unilever and Nestlé provide meaningful geographic hedging.

Both funds operate at comparable cost levels and have demonstrated solid long-term performance, making either a reasonable foundation for defensive sector exposure within a diversified portfolio.