The Invesco Food & Beverage ETF (PBJ) Tops the First Trust Nasdaq Food & Beverage ETF (FTXG) in Size and Long Term Growth

Comparing the Invesco Food & Beverage ETF (NYSEMKT:PBJ) and the First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) comes down to weighing factors like cost, recent returns, risk, and portfolio makeup. Both target the U.S. food and beverage sector, but each brings unique attributes that could appeal to different types of investors.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; figures use five-year weekly returns.

FTXG and PBJ are nearly identical in expense ratios, but FTXG comes with a higher yield, while its payout is slightly lower at 2.0%. Assets under management total $101.2 million as of Oct. 29, 2025, which may appeal to those prioritizing fund size and liquidity.

Performance & risk comparison

What's inside

PBJ tracks a rules-based index evaluating U.S. food and beverage companies on momentum, quality, and value. With 32 holdings, it tilts toward Consumer Defensive (78%) but also includes meaningful Consumer Cyclical (16%) exposure. Top positions include DoorDash (NASDAQ:DASH), Monster Beverage (NASDAQ:MNST), and Hershey (NYSE:HSY). With a 20.4-year history, PBJ suggests durability and index consistency.

By contrast, FTXG is more concentrated in Consumer Defensive stocks (95%, as reported by Financial Modeling Prep), with minimal Basic Materials exposure. Its top holdings—PepsiCo (NASDAQ:PEP), Archer-Daniels-Midland (NYSE:ADM), and Mondelez International (NASDAQ:MDLZ)—reflect a focus on blue-chip staples. They track sector-specific indexes.

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Foolish take

Investors who have held either of these stocks in their portfolio over the past five years have plenty to complain about. The First Trust Nasdaq Food & Beverage ETF is down by 28% from a peak it reached in 2022. The Invesco Food & Beverage ETF is performing a little better. It's been trading for about 11.9% below a peak price it reached in 2022.

Investors who bought the First Trust Nasdaq Food & Beverage ETF five years ago have seen a return of just 11.5% if they include dividend payments. Total return from the Invesco Food & Beverage ETF is somewhat better at 45% over the past five years. Compared to the S&P 500 index, though, they've underperformed by miles. The benchmark index is up by 109% over the past five years, before you factor in dividend payments.

The latest quarterly dividend from the Invesco Food & Beverage ETF is up by 72.6% from the payout it distributed five years ago. The latest quarterly dividend payment from First Trust Nasdaq Food & Beverage ETF is only 52.5% higher than it was five years ago.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating expenses.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its current price.
Beta: A measure of an investment's volatility compared to the overall market, often the S&P 500.
Assets under management (AUM): The total market value of assets that an investment fund manages on behalf of investors.
Max drawdown: The largest observed percentage drop from a fund's peak value to its lowest point over a period.
Consumer Defensive: Sector of companies producing essential goods like food, beverages, and household products, less sensitive to economic cycles.
Consumer Cyclical: Sector of companies whose products or services see higher demand during strong economies, like retailers and restaurants.
Blue-chip: Large, well-established, financially sound companies with a history of reliable performance.
Rules-based index: An index constructed using a fixed set of criteria or rules, rather than active management decisions.
Momentum: An investment strategy or factor focusing on stocks that have shown recent price strength.
Sector-specific index: An index tracking the performance of companies within a particular industry or sector.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash, Hershey, and Monster Beverage. The Motley Fool has a disclosure policy.