Invesco Food & Beverage ETF

PBJ

Market cap $104M

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.

As reports that inflation heated up in January 2025 emerged on February 12, the market shuddered, with the Dow dropping by more than 300 points in morning trading. The recent Consumer Price Index report may be enough to prompt investors to take a cautious stance, particularly as the impact of recent aluminum and steel tariffs has yet to be seen and the threat of tariffs on Mexican and Canadian goods remains in play.

Total spending would be $27.5 billion this year on Valentine's Day, per NRF. The amount is up from last year's $25.8 billion.

Invesco Food & Beverage ETF is a high-fee, high-turnover food & beverage ETF that selects 30 U.S. securities based on a proprietary factor-driven model. Historically, PBJ has sporadically outperformed the broader Consumer Staples sector, represented by XLP. However, it could never sustain those gains, suggesting problems with the overall strategy. My analysis suggests the primary issue is quality. As such, it's appropriate to demand compensation in the form of substantially better growth and value features.