Consumer Staples ETFs: Sector-Wide Defense or a Food-and-Beverage Tilt? VDC vs. PBJ
Key Points
Vanguard Consumer Staples ETF charges a much lower expense ratio and has significantly higher assets under management than Invesco Food & Beverage ETF
PBJ offers a more concentrated portfolio focused on food and beverage companies, while VDC provides broader consumer staples sector exposure
VDC has outperformed PBJ over the past year and five years, while both funds display similar low-beta risk profiles
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Vanguard Consumer Staples ETF (NYSEMKT:VDC) stands out for its much lower expense ratio and broader sector coverage, while Invesco Food & Beverage ETF (NYSEMKT:PBJ) offers a more focused approach to food and beverage stocks with a smaller asset base and higher fees.
Both VDC and PBJ target U.S. consumer staples, but VDC casts a wider net across the sector, while PBJ zeroes in on food and beverage firms using a rules-based selection process. This comparison looks at differences in cost, returns, risk, portfolio composition, and trading characteristics to help investors determine which fund may better fit their needs.
Snapshot (cost & size)
| Metric | VDC | PBJ |
|---|---|---|
| Issuer | Vanguard | Invesco |
| Expense ratio | 0.09% | 0.61% |
| 1-yr return (as of 2026-02-09) | 11.5% | 8.04% |
| Dividend yield | 2.1% | 1.7% |
| Beta | 0.64 | 0.72 |
| AUM | $9.05 billion | $99.12 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.
VDC is notably more affordable, charging just 0.09% annually versus PBJ’s 0.61% fee, and also offers a slightly higher dividend yield at 2.0% compared to PBJ’s 1.7%.
Performance & risk comparison
| Metric | VDC | PBJ |
|---|---|---|
| Max drawdown (5 y) | -16.55% | -15.84% |
| Growth of $1,000 over 5 years | $1,375 | $1,293 |
What's inside
PBJ is built around 31 U.S. companies in the food and beverage value chain, aiming for capital appreciation by screening on factors like price momentum, quality, and management actions. Its largest holdings are Corteva Inc (NYSE:CTVA), Sysco Corp (NYSE:SYY), and Monster Beverage Corp (NASDAQ:MNST), with a portfolio that is 89% consumer defensive but includes modest allocations to basic materials and industrials. The fund rebalances quarterly and has a track record for over 20 years.
VDC, in contrast, tracks the broader consumer staples sector with 103 holdings, including household names like Walmart Inc (NASDAQ:WMT), Costco Wholesale Corp (NASDAQ:COST), and Procter & Gamble Co. (NYSE:PG). It is almost entirely consumer defensive with only minimal exposure to other sectors, thus delivering a purer staple tilt.
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What this means for investors
Consumer staples investing is meant to provide reliability, which is why small design differences matter more here than in most sectors. That principle comes into focus when comparing the Vanguard Consumer Staples ETF with the Invesco Food & Beverage ETF, where stability is achieved through very different trade-offs.
VDC offers broad, low-cost exposure to the staples sector, leveraging steady demand for household goods and established brands to support returns. Its diversification limits the impact of any single subsector. PBJ focuses on food and beverage companies and uses factor-based screens, making it more sensitive to consumer spending trends and valuation changes. This targeted approach also comes with a significantly higher fee.
For investors, VDC fits portfolios where staples are expected to quietly do their job and offset risk elsewhere. PBJ suits investors who are willing to pay more to target a specific slice of the sector and accept more variability along the way. The decision is less about staples themselves and more about whether your defensive allocation is built for predictability or for a view you will need to keep revisiting.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Monster Beverage, Sysco, and Walmart. The Motley Fool has a disclosure policy.
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