Consumer Staples Stocks: IYK Offers Broader Holdings While PBJ Focuses on Food

iShares U.S. Consumer Staples ETF (IYK +0.01%) and Invesco Food & Beverage ETF (PBJ +0.73%) both focus on defensive sectors, but IYK offers lower costs, a broader portfolio, and a higher dividend yield, while PBJ is more narrowly concentrated in food and beverage stocks.

Both IYK and PBJ target investors looking for exposure to U.S. consumer staples, though their approaches differ. IYK offers a classic take on the sector, spanning major household names and personal products, while PBJ focuses on food and beverage companies using a rules-based selection method. This comparison unpacks their key differences in cost, composition, performance, and risk.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.

IYK is more affordable in terms of fees, charging 0.38% compared to PBJ’s 0.61%, and it offers a higher dividend yield at 2.7% versus PBJ’s 1.6%, giving income-focused investors a modest edge.

Performance & risk comparison

What’s inside

IYK tracks the broader U.S. consumer staples sector, holding 54 stocks as of its most recent data, and has been in operation for over 25 years. Its largest allocations include Procter & Gamble (PG 0.65%), Coca-cola (KO +0.12%), and Philip Morris International Inc (PM 0.89%), reflecting a tilt toward household products, beverages, and tobacco. The fund also has a notable 11% allocation to healthcare, which brings additional diversification beyond pure consumer staples.

PBJ, by contrast, is much more concentrated in food and beverage companies, with 90% in consumer defensive names. Its top positions are Kroger Co. (KR +1.76%), Archer-Daniels-Midland Co (ADM +1.66%), and Corteva Inc (CTVA +0.62%), and it holds just 31 stocks. PBJ’s approach is more narrowly focused, which may appeal to those specifically seeking exposure to food-related businesses.

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What this means for investors

The iShares U.S. Consumer Staples ETF (IYK) and the Invesco Food & Beverage ETF (PBJ) are both exchange-traded funds (ETFs) that are loaded with consumer staples stocks. Here’s how these two ETFs match up head-to-head.

First, let’s have a look at IYK. It has the edge on fees. IYK has an expense ratio of 0.38%, compared to PBJ’s 0.61%. IYK also has a higher dividend yield (2.7% vs. 1.6%). Lastly, IYK has a decided advantage in liquidity. IYK has $1.2 billion in AUM, while PBJ has $87.1 million in AUM. Consequently, investors may find it easier to transact in shares in IYK than PBJ.

As for PBJ, it has performed better over the last year. Shares of PBJ have advanced by 5.8%, while IYK is nearly unchanged at 0.1%. PBJ is also more concentrated and focused. The fund holds only 31 stocks and is squarely focused on the food and beverage industry.

In summary, investors seeking lower fees and higher rates of income may favor IYK. Meanwhile, those willing to accept greater risk, higher concentration, and potentially greater performance may select PBJ.