The Vanguard Consumer Staples ETF (VDC 0.17%) and the Invesco Food & Beverage ETF (PBJ +0.14%) both target defensive sectors, but VDC's broader coverage, lower cost, and higher yield stand out, while PBJ offers a more concentrated bet on food and beverage makers.
Both VDC and PBJ give investors access to companies that tend to be resilient through economic cycles, though their approaches differ. VDC tracks a wide consumer staples index, while PBJ narrows in on the food and beverage industry, using a rules-based methodology to select 31 stocks. This comparison highlights cost, performance, risk, and portfolio makeup to help investors decide which may better fit their needs.
Snapshot (cost & size)
| Metric | VDC | PBJ |
|---|---|---|
| Issuer | Vanguard | Invesco |
| Expense ratio | 0.09% | 0.61% |
| 1-yr return (as of 2026-01-30) | 4.6% | (1.2%) |
| Dividend yield | 2.1% | 1.7% |
| Beta | 0.55 | 0.65 |
| AUM | $8.5 billion | $94.0 million |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
VDC is notably more affordable, charging just 0.09% in annual fees compared to PBJ's 0.61%. VDC also offers a slightly higher dividend yield, paying 2.1% versus PBJ's 1.7%, which may appeal to income-focused investors.
NYSEMKT: VDC
Key Data Points
Performance & risk comparison
| Metric | VDC | PBJ |
|---|---|---|
| Max drawdown (5 y) | (16.55%) | (15.84%) |
| Growth of $1,000 over 5 years | $1,359 | $1,279 |
NYSEMKT: PBJ
Key Data Points
What's inside
PBJ holds 31 stocks focused mainly on food and beverage companies, with a sector mix of 89% consumer defensive, 5% basic materials, and 3% industrials. Its top positions include Sysco (SYY +0.41%), Corteva (CTVA +1.44%), and Monster Beverage (MNST 0.72%). The fund has a long track record at over 20 years, and its quarterly rebalancing may appeal to those seeking a more actively managed rules-based approach within this niche.
VDC, by contrast, casts a wider net across the consumer staples sector, allocating 98% to consumer defensive stocks and holding over 100 names. Its largest positions are Walmart (WMT +1.47%), Costco Wholesale (COST +1.10%), and Procter & Gamble (PG 1.93%), which represent household names across food, retail, and personal care. This breadth may help smooth out company-specific risks relative to PBJ's more concentrated portfolio.
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What this means for investors
Consumer staples, the everyday essentials like food, household products, and beverages, tend to hold their value during economic uncertainty because people keep buying toothpaste and groceries regardless of market conditions. Both VDC and PBJ target this defensive sector, but with notably different approaches. VDC offers broad, diversified exposure while PBJ narrows its focus to just food and beverage companies.
VDC casts a wide net across the entire consumer staples universe, from massive retailers like Walmart and Costco to household goods giants like Procter & Gamble, plus tobacco and personal care companies. It's a pure index fund tracking the sector comprehensively at rock-bottom cost. PBJ takes the opposite approach, using quantitative analysis to actively select a concentrated portfolio of food and beverage specialists, while charging significantly higher fees for that selectivity. In 2025, VDC's broader diversification delivered modestly positive returns while PBJ's concentrated bet on food companies struggled amid rising ingredient costs and shifting consumer preferences.
VDC works well for investors seeking low-cost, comprehensive defensive exposure to the entire consumer staples sector with lower volatility. PBJ appeals to those betting specifically on the food and beverage subsector who believe its concentrated, actively selected portfolio justifies paying nearly seven times the fee—though recent performance suggests that hasn't paid off.
