Hungry to Grow Your Portfolio? These Food & Beverage ETFs May Help

Both the Invesco Food & Beverage ETF (NYSEMKT:PBJ) and the First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) connection vulnerability to the U.S. nutrient and beverage industry, with akin holdings counts. This examination highlights their differences successful risk, income potential, and trading characteristics to assistance investors determine which whitethorn amended acceptable their portfolio needs.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

PBJ and FTXG are astir identical successful presumption of expenses, but FTXG offers a higher dividend yield, which whitethorn entreaty to investors seeking income from the sector.

Nearly a decennary since its inception, FTXG tracks a astute beta scale focused connected U.S. nutrient and beverage companies, with 31 companies successful its holdings. Its largest positions are PepsiCo, Inc. (NASDAQ:PEP), Archer-Daniels-Midland Company (NYSE:ADM), and Mondelez International, Inc. (NASDAQ:MDLZ).

Launched implicit a decennary ago, PBJ besides holds 31 stocks crossed the nutrient and beverage sector, but it spreads its apical holdings crossed Hershey Co. (NYSE:HSY), PepsiCo, and Sysco Corp. (NYSE:SYY).

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If investors are much acrophobic with semipermanent investments, PBJ has looked overmuch better, with a 31% instrumentality implicit the past 5 years, portion FTXG has fallen 6.94% implicit the aforesaid period. And adjacent though FXTG has the higher dividend output percentage, PBJ has the higher quarterly dividend payout, arsenic the fund’s terms is astir doubly arsenic high.

Top holdings whitethorn besides beryllium a origin successful deciding betwixt these 2 ETFs, due to the fact that erstwhile looking astatine FTXG, PepsiCo is its starring asset, portion PBJ’s astir weighted plus is Hershey.

Regardless of which money investors choose, some tin beryllium invaluable additions to one’s portfolio during economical downturns, arsenic galore of the companies held wrong some funds supply indispensable goods to consumers careless of the economy’s condition. Consumer antiaircraft stocks and ETFs are often utilized arsenic a hedge against marketplace volatility, truthful portion their returns whitethorn not beryllium arsenic precocious arsenic tech stocks, they tin beryllium overmuch much stable.