Walmart’s (WMT) prospects look strong, driven by e-commerce expansion, supply chain improvements, and global market growth. Also, the company is combining online and in-store shopping to make buying easy and smooth for customers. Thus, investors looking for exposure to WMT stock may consider investing in these two ETFs: Vanguard Consumer Staples ETF (VDC) and Consumer Staples Select Sector SPDR Fund (XLP).
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It is worth mentioning that Walmart recently beat expectations in Q1, driven by strong U.S. same-store sales and a big boost in e-commerce. Looking ahead, WMT expects Q2 net sales to grow between 3.5% and 4.5%.
For Fiscal 2026, the company maintains a cautious outlook, projecting net sales growth between 3% and 4%, in line with its long-term target of 4% annual growth set years ago.
Let’s take a deeper look at these two ETFs.
Vanguard Consumer Staples ETF
The VDC ETF tracks the performance of consumer staples companies, such as food, beverage, household, and personal care brands. It offers exposure to stable, defensive stocks that tend to perform well regardless of economic cycles. Importantly, WMT accounts for 11.2% of VDC’s total holdings.
Some of the top holdings in VDC ETF include Costco Wholesale (COST), Procter & Gamble (PG), and Foot Locker (FL). Overall, the ETF has $7.51 million in assets under management (AUM) and an expense ratio of 0.09%. Over the past year, the VDC ETF has generated a return of 11.74%.
On TipRanks, VDC has a Moderate Buy consensus rating based on 56 Buys, 44 Holds, and four Sells assigned in the last three months. At $240.74, the average VDC ETF price target implies 11.74% upside potential.
Consumer Staples Select Sector SPDR Fund
The XLP ETF tracks the Consumer Staples Select Sector Index. It includes companies from industries like food, beverage, household products, and personal care. It must be noted that consumer staples stocks tend to be less volatile during market downturns. WMT stock constitutes 12.67% of the ETF’s holdings.
Apart from WMT, some of the top stocks in the XLP ETF are Costco, Coca-Cola (KO), and Philip Morris (PM). Overall, the ETF has $15.82 billion in AUM. Also, it has an expense ratio of 0.09%. The XLP ETF has returned 3.42% in the past year.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 40 stocks held, 23 have Buys, 16 have a Hold rating, and one has a Sell. At $88.61, the average XLP ETF price target implies a 11.45% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to WMT, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider XLP and VDC, as these ETFs offer exposure to Walmart stock.