Why the iShares US Consumer Staples ETF Beats this Rival ETF

Core Insights - The iShares US Consumer Staples ETF (IYK) is larger and has delivered higher recent returns compared to the First Trust Nasdaq Food & Beverage ETF (FTXG) [1][2] - IYK provides a broad exposure to U.S. consumer staples, while FTXG focuses specifically on food and beverage companies [2][8] Cost and Size Comparison - IYK has an expense ratio of 0.38%, while FTXG charges 0.60% [3][4] - As of February 9, 2026, IYK's one-year return is 12.7%, compared to FTXG's 5.6% [3] - IYK has a total asset under management (AUM) of $1.3 billion, significantly larger than FTXG's $19.8 million [3] Performance and Risk Comparison - IYK has a maximum drawdown of -15.04% over five years, while FTXG's is -21.71% [5] - An investment of $1,000 in IYK would grow to $1,239 over five years, compared to $925 for FTXG [5] Portfolio Composition - FTXG tracks a smart-beta index with 310 holdings, heavily weighted towards consumer defensive stocks (91%), including major companies like PepsiCo and Mondelez [6] - IYK covers 58 companies across various sectors, including household products and tobacco, with significant holdings in Procter & Gamble and Coca-Cola [7] Investment Implications - IYK is considered a better investment option due to its broader exposure to consumer staples, which mitigates risks associated with the more volatile food and beverage sector [8]