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

Core Viewpoint - The Invesco Food & Beverage ETF (PBJ) and the First Trust Nasdaq Food & Beverage ETF (FTXG) provide exposure to the U.S. food and beverage industry, with differences in risk, income potential, and trading characteristics that may influence investor decisions [1] Cost & Size - PBJ has an expense ratio of 0.61% and FTXG has a slightly lower expense ratio of 0.60% - As of February 14, 2026, PBJ has a 1-year return of 7.50% while FTXG has a return of 6.87% - The dividend yield for PBJ is 1.62% compared to FTXG's 2.60% - PBJ has a beta of 0.55 indicating higher volatility compared to FTXG's beta of 0.42 - Assets Under Management (AUM) for PBJ is $103.9 million while FTXG has $20.10 million [2] Performance & Risk Comparison - Over the past five years, PBJ experienced a maximum drawdown of -15.84% while FTXG had a larger drawdown of -21.71% - An investment of $1,000 in PBJ would have grown to $1,296 over five years, whereas the same investment in FTXG would have grown to $925 [4] Holdings Composition - FTXG tracks a smart beta index with 31 holdings, including major positions in PepsiCo, Archer-Daniels-Midland, and Mondelez International - PBJ also holds 31 stocks, with top holdings in Hershey, PepsiCo, and Sysco [5] Investment Implications - For long-term investments, PBJ has shown a 31% return over the last five years, while FTXG has decreased by 6.94% during the same period - Despite FTXG's higher dividend yield, PBJ offers a higher quarterly dividend payout due to its higher fund price [7] - The choice of top holdings may influence investor preference, with FTXG's leading asset being PepsiCo and PBJ's being Hershey [8] - Both ETFs can serve as valuable portfolio additions during economic downturns, as they consist of consumer defensive stocks that provide essential goods [9]