Invesco Food & Beverage ETF

PBJ

Market cap $101M

Invesco Food & Beverage ETF (PBJ) is rated a contrarian buy, despite recent underperformance and sector headwinds. PBJ offers a portfolio of undervalued, defensive food and beverage stocks, with a low P/E ratio and strong dividend growth. Liquidity is limited and technicals show a range-bound chart, but improving RSI signals potential for price recovery toward resistance.

November's monthly screen brings us 25 more interesting names to consider for further due diligence, and 5 of those that we'll take a closer look at. We have a variety of names making the list this month, including a BDC, a beaten-down consumer staples company and an energy play. A couple of these this month look like they are interesting value plays for a market that looks otherwise highly stretched.

The Invesco Food & Beverage ETF and the First Trust Nasdaq Food & Beverage ETF both offer focused exposure to food and beverage stocks. The Invesco Food & Beverage ETF stands out for its larger size and slightly broader sector reach.

As the U.S. government shutdown deepens economic uncertainty, investors may turn to consumer staples ETFs like XLP, FTXG and PBJ for stability.

This article provides a top-down analysis of the consumer staples sector based on industry metrics. The beverage industry has the best value score, and tobacco the worst one. Invesco Food & Beverage ETF (PBJ) offers focused exposure to food and beverage industries, outperforming XLP over the past year but lagging since 2005.

Over the last 100 trading days, or roughly five months, the S&P 500 Index (SPX) has surged more than 25%.

PBJ offers investors exposure to the food and beverage industry. PBJ's complex index methodology leads to heavy small/mid-cap exposure, which I view as a negative. The ETF's 0.62% expense ratio is high compared to peers, eroding potential returns for investors.

What you need to know about Trump tariffs and its impact on sector ETFs.

Raise a toast to the ETFs in these sectors and find some hidden luck in this Irish festival.

A second round of tariffs imposed on Canada, China and Mexico by President Donald Trump takes effect today. These ETF areas would be impacted.