Both the Invesco Food & Beverage ETF (PBJ +0.45%) and the First Trust Nasdaq Food & Beverage ETF (FTXG +0.50%) offer exposure to the U.S. food and beverage industry, with similar holdings counts. This comparison highlights their differences in risk, income potential, and trading characteristics to help investors decide which may better fit their portfolio needs.
Snapshot (cost & size)
| Metric | PBJ | FTXG |
|---|---|---|
| Issuer | Invesco | First Trust |
| Expense ratio | 0.61% | 0.60% |
| 1-yr return (as of Feb. 14, 2026) | 7.50% | 6.87% |
| Dividend yield | 1.62% | 2.60% |
| Beta | 0.55 | 0.42 |
| AUM | $103.9 million | $20.10 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.
PBJ and FTXG are nearly identical in terms of expenses, but FTXG offers a higher dividend yield, which may appeal to investors seeking income from the sector.
Performance & risk comparison
| Metric | PBJ | FTXG |
|---|---|---|
| Max drawdown (5 y) | -15.84% | -21.71% |
| Growth of $1,000 over 5 years | $1,296 | $925 |
What's inside
Nearly a decade since its inception, FTXG tracks a smart beta index focused on U.S. food and beverage companies, with 31 companies in its holdings. Its largest positions are PepsiCo, Inc. (PEP +0.88%), Archer-Daniels-Midland Company (ADM +0.22%), and Mondelez International, Inc. (MDLZ +0.74%).
Launched over a decade ago, PBJ also holds 31 stocks across the food and beverage sector, but it spreads its top holdings across Hershey Co. (HSY +1.34%), PepsiCo, and Sysco Corp. (SYY +0.55%).
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
If investors are more concerned with long-term investments, PBJ has looked much better, with a 31% return over the last five years, while FTXG has fallen 6.94% over the same period. And even though FXTG has the higher dividend yield percentage, PBJ has the higher quarterly dividend payout, as the fund’s price is approximately twice as high.
Top holdings may also be a factor in deciding between these two ETFs, because when looking at FTXG, PepsiCo is its leading asset, while PBJ’s most weighted asset is Hershey.
Regardless of which fund investors choose, both can be valuable additions to one’s portfolio during economic downturns, as many of the companies held within both funds provide essential goods to consumers regardless of the economy’s condition. Consumer defensive stocks and ETFs are often used as a hedge against market volatility, so while their returns may not be as high as tech stocks, they can be much more stable.
