IYK vs. PBJ: Blue-Chip Stability or Concentrated Food Bets?

Core Insights - The Invesco Food & Beverage ETF (PBJ) and iShares US Consumer Staples ETF (IYK) differ significantly in cost, yield, and sector coverage, with IYK being more affordable and offering a higher dividend yield [1][3] Cost and Size Comparison - PBJ has an expense ratio of 0.61% and a 1-year return of 0.7%, while IYK has a lower expense ratio of 0.38% and a 1-year return of 7.7% [3] - IYK's dividend yield is 2.6%, compared to PBJ's 1.8%, and IYK has assets under management (AUM) of $1.2 billion, significantly higher than PBJ's $95.7 million [3] Performance and Risk Comparison - Over the past five years, PBJ experienced a maximum drawdown of -15.84%, while IYK had a slightly lower drawdown of -15.04% [4] - An investment of $1,000 in PBJ would have grown to $1,239 over five years, compared to $1,162 for IYK [4] Sector Exposure - IYK holds 54 stocks, primarily large, household names, with 84% in consumer defensive and 12% in healthcare [6] - PBJ focuses almost entirely on food and beverage companies, with 89% in consumer defensive, 5% in basic materials, and 3% in consumer cyclicals [7] Investment Implications - IYK is recommended for investors seeking broad exposure to consumer staples, providing stability during market uncertainty, while PBJ may appeal to those with a strong belief in the food and beverage sector's performance [9][10]