FSTA vs. PBJ: Which Consumer Staples ETF Should You Buy?
Key Points
FSTA charges a much lower expense ratio and sports a higher dividend yield than PBJ.
PBJ delivered a stronger one-year return, while FSTA has a slightly deeper five-year max drawdown.
FSTA holds more stocks than PBJ.
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The Fidelity MSCI Consumer Staples Index ETF (NYSEMKT:FSTA) stands out for its considerably lower fees, broader portfolio, and higher yield, while the Invesco Food & Beverage ETF (NYSEMKT:PBJ) has recently outperformed on total return.
Both PBJ and FSTA target the U.S. consumer staples and food sector, but they take different approaches. PBJ focuses on food and beverage companies and rebalances quarterly. At the same time, FSTA tracks a broad index of consumer staples stocks, resulting in a much wider holdings list and greater exposure to household names.
Snapshot (cost & size)
| Metric | PBJ | FSTA |
|---|---|---|
| Issuer | Invesco | Fidelity |
| Expense ratio | 0.61% | 0.08% |
| 1-yr return (as of 2026-03-31) | 8.23% | 4.73% |
| Dividend yield | 1.54% | 2.22% |
| Beta | 0.72 | 0.63 |
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.
FSTA looks much more affordable in terms of costs, charging just 0.08% annually versus PBJ’s 0.61%, and it also offers a higher dividend yield at 2.2% compared to PBJ’s 1.5%. Income-focused investors may view FSTA as the better ETF.
Performance & risk comparison
| Metric | PBJ | FSTA |
|---|---|---|
| Max drawdown (5 y) | (15.8%) | (16.5%) |
| Growth of $1,000 over 5 years | $1,320 | $1,415 |
What's inside
FSTA focuses almost exclusively on consumer staples stocks (99% of the portfolio), with 98 holdings (97 long, 1 short), providing broad sector coverage. Its top positions include Walmart (NASDAQ:WMT), Costco Wholesale (NASDAQ:COST), and Procter & Gamble (NYSE:PG). The fund has been operating for more than 12 years, making it an established option for staple sector exposure.
PBJ, by contrast, focuses mostly on food and beverage companies. Its top holdings include Corteva (NYSE:CTVA), Kroger (NYSE:KR), and Archer-Daniels-Midland (NYSE:ADM). These top holdings showcases its food and agriculture emphasis. PBJ holds just 31 stocks, so it is less diversified than FSTA. Its top three holdings account for over 15% of the portfolio.
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What this means for investors
FSTA appears to check several boxes for investors interested in a consumer staples ETF. In addition to its lowest expense ratio and higher dividend yield, it delivered better returns over the past five years.
The outperformance is significant because FSTA is far more diversified. It holds over three times as many stocks. Plus, it offers broader exposure across the consumer staples sectors.
Unlike PBJ, which focuses almost exclusively on food and beverage companies, FSTA allocates 16% to household products, 8% to tobacco, and 3% to personal care.
FSTA has a chance to widen its performance lead over PBJ if the economy improves. A stronger economy, particularly in consumer spending, could benefit its large retail holdings.
While PBJ has recently outperformed and suffered a shallower five-year max drawdown, FSTA offers additional advantages that will appeal to investors.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.
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