Investors comparing iShares U.S. Consumer Staples ETF (NYSEMKT:IYK) and Invesco Food & Beverage ETF (NYSEMKT:PBJ) may find that IYK offers broader sector diversification and lower costs, while PBJ provides concentrated exposure to the food and beverage industry.
Both funds offer defensive exposure to American markets by tracking consumer-focused companies. While the Invesco fund narrows its lens to the food and beverage industry, the iShares fund takes a broader approach to the consumer staples sector, including household products and tobacco.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
iShares U.S. Consumer Staples ETF is the more affordable option with a 0.38% expense ratio compared to 0.61% for PBJ. This comparison also highlights a significant yield gap, as IYK offers a higher payout.
iShares U.S. Consumer Staples ETF provides broad exposure to the staples sector with 53 holdings. Its portfolio leans heavily toward consumer defensive stocks at 83%, followed by healthcare at 13% and basic materials at 3%. Its largest positions include Procter & Gamble at 13.4%, Coca-Cola at 12.5%, and Philip Morris International at 11%. It was launched in 2000. iShares U.S. Consumer Staples ETF has paid $1.90 per share over the trailing 12 months, which on its recent ~$73.11 share price works out to a 2.50% yield.
Invesco Food & Beverage ETF tracks the Dynamic Food & Beverage Intellidex Index, holding 31 equities. It allocates 70% to consumer defensive stocks, 8% to industrials, and 8% to consumer cyclical companies. Its largest positions include Monster Beverage at 5.6%, Corteva at 5.34%, and Archer-Daniels-Midland at 5.3%. It was launched in 2005. Invesco Food & Beverage ETF has paid $0.61 per share over the trailing 12 months, which on its recent ~$47.92 share price works out to a 1.30% yield.
For more guidance on ETF investing, check out the full guide at this link.
After a huge tech-fueled run-up in the stock market, it makes sense for investors to seek some less exciting, more defensive positions for their portfolios. The consumer staples sector can be a great place to park some cash if you're looking for modest capital appreciation and income generation that can withstand economic fluctuations.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
