IYK Offers Broader Consumer Staples Exposure Than FTXG
Key Points
IYK offers broader staples exposure, lower fees, and much higher liquidity than FTXG.
Both ETFs show similar dividend yields, but IYK has delivered better recent and five-year returns with less severe drawdowns.
FTXG is more concentrated in food and beverage and may see trading friction due to its small size and thin volume.
- 10 stocks we like better than First Trust Exchange-Traded Fund VI - First Trust Nasdaq Food & Beverage ETF ›
Both iShares U.S. Consumer Staples ETF (NYSEMKT:IYK) and First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) target the U.S. consumer staples sector, but they differ in breadth, cost, and trading characteristics. IYK stands out for its lower cost, deeper liquidity, and milder historical drawdowns, while FTXG is more narrowly focused and may appeal to investors seeking a pure-play food and beverage tilt.
This comparison unpacks their performance, portfolio makeup, and practical considerations to help investors decide which may better suit their needs.
Snapshot (cost & size)
| Metric | IYK | FTXG |
|---|---|---|
| Issuer | iShares | First Trust |
| Expense ratio | 0.38% | 0.6% |
| 1-yr return (as of 22/04/26) | (0.5%) | (4.5%) |
| Dividend yield | 2.7% | 2.75% |
| Beta | 0.62 | 0.58 |
| AUM | $1.3 billion | $18.8 million |
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 with a 0.38% expense ratio compared to FTXG's 0.6%, while both funds offer a dividend yield around 2.7%. Investors may find IYK's lower cost appealing for long-term holding.
Performance & risk comparison
| Metric | IYK | FTXG |
|---|---|---|
| Max drawdown (5 y) | (15.05%) | (21.69%) |
| Growth of $1,000 over 5 years | $1,290 | $950.82 |
What's inside
FTXG focuses tightly on the food and beverage segment, allocating 94% to consumer defensive stocks with minor tilts to basic materials and industrials. It holds about 30 companies, with top positions in Archer-Daniels-Midland, Mondelez International, Coca-Cola, and PepsiCo. The fund has a 9.6-year history, but its $20.7 million assets under management and modest daily trading volume may limit ease of entry or exit for larger trades.
IYK, by contrast, casts a wider net across consumer staples, with 85% in consumer defensive, 11% in healthcare, and 3% in basic materials. Its 54 holdings include giants such as Procter & Gamble, Coca-Cola, and Philip Morris International. This broader mix and higher liquidity make IYK a more diversified and accessible option for exposure to U.S. staples.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Consumer staples stocks are often viewed as defensive positions because of their stability and income. These companies provide products that consumers buy in all kinds of economic environments, and investors often rotate into these types of stocks during periods of market uncertainty. Investing in a consumer staples exchange-traded fund (ETF) allows you to participate in the entire theme without having to follow the performances of individual companies. But which consumer staples ETF is right for you?
Investors who are focused on income will note that IYK and FTXG offer virtually identical dividend yields, around 2.7%. But FTXG charges nearly twice as much in fees as IYK, which will cut into some of those income gains.
FTXG is also much smaller, with just $19 million in assets under management, as well as a much more concentrated focus on food and beverages. Its stock is down much more over the past year and it had a steeper maximum drawdown over the last five years than IYK. The larger iShares fund held up much better amid the past year’s tech-dominated market headlines, likely owing to its larger size, lower fees, and broader focus across consumer staples. Over its recent history, IYK stands out as the stronger defensive investment for most investors. If you feel strongly about investing in the food and beverage space specifically, it may be worth also holding FTXG, or holding the individual food and beverage stocks that you believe will lead this sector.
Should you buy stock in First Trust Exchange-Traded Fund VI - First Trust Nasdaq Food & Beverage ETF right now?
Before you buy stock in First Trust Exchange-Traded Fund VI - First Trust Nasdaq Food & Beverage ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and First Trust Exchange-Traded Fund VI - First Trust Nasdaq Food & Beverage ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $502,837!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,433!*
Now, it’s worth noting Stock Advisor’s total average return is 977% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 24, 2026.
Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.
Recommended Articles
