We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Invest in the Invesco Dynamic Food & Beverage ETF (PBJ)?
Read MoreHide Full Article
Looking for broad exposure to the Consumer Staples - Food & Beverage segment of the equity market? You should consider the Invesco Dynamic Food & Beverage ETF (PBJ - Free Report) , a passively managed exchange traded fund launched on 06/23/2005.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Food & Beverage is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $361.61 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Food & Beverage segment of the equity market. PBJ seeks to match the performance of the Dynamic Food & Beverage Intellidex Index before fees and expenses.
The Dynamic Food & Beverage Intellidex Index is comprised of stocks of 30 U.S. food and beverage companies.These are companies that are principally engaged in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.63%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 0.93%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Staples sector--about 97.30% of the portfolio.
Looking at individual holdings, Keurig Dr Pepper Inc (KDP - Free Report) accounts for about 5.42% of total assets, followed by General Mills Inc (GIS - Free Report) and Sysco Corp (SYY - Free Report) .
The top 10 holdings account for about 47.34% of total assets under management.
Performance and Risk
Year-to-date, the Invesco Dynamic Food & Beverage ETF has added about 3.37% so far, and it's up approximately 5.78% over the last 12 months (as of 12/19/2022). PBJ has traded between $42.01 and $49.16 in this past 52-week period.
The ETF has a beta of 0.63 and standard deviation of 20.18% for the trailing three-year period, making it a medium risk choice in the space. With about 30 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Food & Beverage ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PBJ is an excellent option for investors seeking exposure to the Consumer Staples ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
VanEck Future of Food ETF tracks ---------------------------------------- and the First Trust NASDAQ Food & Beverage ETF (FTXG - Free Report) tracks Nasdaq US Smart Food & Beverage Index. VanEck Future of Food ETF has $2.73 million in assets, First Trust NASDAQ Food & Beverage ETF has $954.27 million. YUMY has an expense ratio of 0.69% and FTXG charges 0.60%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should You Invest in the Invesco Dynamic Food & Beverage ETF (PBJ)?
Looking for broad exposure to the Consumer Staples - Food & Beverage segment of the equity market? You should consider the Invesco Dynamic Food & Beverage ETF (PBJ - Free Report) , a passively managed exchange traded fund launched on 06/23/2005.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Food & Beverage is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $361.61 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Food & Beverage segment of the equity market. PBJ seeks to match the performance of the Dynamic Food & Beverage Intellidex Index before fees and expenses.
The Dynamic Food & Beverage Intellidex Index is comprised of stocks of 30 U.S. food and beverage companies.These are companies that are principally engaged in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.63%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 0.93%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Staples sector--about 97.30% of the portfolio.
Looking at individual holdings, Keurig Dr Pepper Inc (KDP - Free Report) accounts for about 5.42% of total assets, followed by General Mills Inc (GIS - Free Report) and Sysco Corp (SYY - Free Report) .
The top 10 holdings account for about 47.34% of total assets under management.
Performance and Risk
Year-to-date, the Invesco Dynamic Food & Beverage ETF has added about 3.37% so far, and it's up approximately 5.78% over the last 12 months (as of 12/19/2022). PBJ has traded between $42.01 and $49.16 in this past 52-week period.
The ETF has a beta of 0.63 and standard deviation of 20.18% for the trailing three-year period, making it a medium risk choice in the space. With about 30 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dynamic Food & Beverage ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PBJ is an excellent option for investors seeking exposure to the Consumer Staples ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
VanEck Future of Food ETF tracks ---------------------------------------- and the First Trust NASDAQ Food & Beverage ETF (FTXG - Free Report) tracks Nasdaq US Smart Food & Beverage Index. VanEck Future of Food ETF has $2.73 million in assets, First Trust NASDAQ Food & Beverage ETF has $954.27 million. YUMY has an expense ratio of 0.69% and FTXG charges 0.60%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.