XLP is an exchange-traded fund (ETF) that focuses on consumer staples. It aims to track the performance of the S&P 500 Consumer Staples Index, which includes companies that produce essential goods like food, beverages, and household products. These companies tend to be more stable during economic downturns, making XLP a popular choice for conservative investors. Investors in XLP gain exposure to well-known brands such as Procter & Gamble, Coca-Cola, and PepsiCo. The fund is designed to provide diversification within the consumer staples sector, allowing investors to benefit from the steady demand for these essential products, regardless of economic conditions.