FTXG vs. PBJ: Same Pantry, Same Fee, but the 5-Year Returns Tell a Different Story
Key Points
Invesco Food & Beverage ETF has provided higher total returns over the last five years compared to First Trust Nasdaq Food & Beverage ETF.
First Trust Nasdaq Food & Beverage ETF offers a higher trailing-12-month dividend yield.
Both funds have similar expense ratios and maintain portfolios of around 30 food and beverage holdings.
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Investors choosing between First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) and Invesco Food & Beverage ETF (NYSEMKT:PBJ) may weigh the First Trust fund's higher distribution yield against the Invesco fund's higher historical total returns.
The First Trust Nasdaq Food & Beverage ETF (FTXG) and the Invesco Food & Beverage ETF (PBJ) both provide targeted exposure to the companies that stock our pantries and refrigerators. While they operate within the same niche, their indexing strategies and historical risk profiles offer distinct paths for sector-specific investors.
Snapshot (cost & size)
| Metric | FTXG | PBJ |
|---|---|---|
| Issuer | First Trust | Invesco |
| Expense ratio | 0.60% | 0.61% |
| 1-yr return (as of June 3, 2026) | 0.30% | 0.40% |
| Dividend yield | 2.80% | 1.60% |
| Beta | 0.39 | 0.48 |
| AUM | $22.1 million | $89.7 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. Dividend yield is the trailing-12-month distribution yield.
The expense ratios for these funds are nearly identical, separated by only one basis point. However, the income profiles differ significantly; the First Trust fund offers a yield more than 1.00 percentage point higher than its Invesco counterpart.
Performance & risk comparison
| Metric | FTXG | PBJ |
|---|---|---|
| Max drawdown (5 yr) | (21.70%) | (15.80%) |
| Growth of $1,000 over 5 years (total return) | $929 | $1,167 |
What's inside
The Invesco Food & Beverage ETF (PBJ) launched in 2005 and tracks an index that evaluates companies based on momentum, quality, and value. Its portfolio of 31 holdings is concentrated in consumer defensives at 86%, with smaller allocations to consumer cyclical at 6% and basic materials at 5%. Largest positions include Archer-Daniels-Midland (NYSE:ADM) at 6.43%, Monster Beverage (NASDAQ:MNST) at 5.47%, and Mondelez International (NASDAQ:MDLZ) at 5.30%. Over the trailing 12 months, the fund has paid $0.75 per share in dividends. This approach aims for capital appreciation by thoroughly evaluating 30 US food and beverage companies through multi-factor analysis.
The First Trust Nasdaq Food & Beverage ETF (FTXG) targets a similar market with 31 holdings but follows a more aggressive sector concentration, with 94.00% of assets under management (AUM) in consumer defensives. Its largest positions include Archer-Daniels-Midland (NYSE:ADM) at 10.26%, Mondelez International (NASDAQ:MDLZ) at 8.52%, and The Coca-Cola Company (NYSE:KO) at 8.26%. This First Trust fund has a trailing-12-month dividend of $0.61 per share and was launched in 2016. Investors may note its strategy seeks to replicate the Nasdaq US Smart Food & Beverage Index, providing a 95% correlation to its benchmark while maintaining a tight focus on larger industry players.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Food and beverage companies occupy a comfortable corner of the investment universe. People eat regardless of what markets are doing, which gives this sector a defensive quality that attracts investors during uncertain times. The challenge is that "defensive" does not always mean "rewarding.” And the five-year track record of these two funds makes that tension vivid.
PBJ has returned roughly 5% annually over the past five years while FTXG has delivered negative returns over the same period. That’s certainly worth nothing, given that both funds hold similar stocks at nearly identical fees. PBJ's index evaluates food and beverage companies on momentum, quality, and value, and includes a modest allocation to consumer cyclical names alongside the staples. That slightly broader approach has produced meaningfully better outcomes over time.
FTXG's higher yield gives it narrow appeal for income-focused investors. But for long-term investors prioritizing total returns, PBJ's stronger historical performance and larger asset base make it the more credible choice in this niche. Because neither fund offers meaningful diversification on its own, these ETFs work best as targeted additions to a broader portfolio.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Monster Beverage. The Motley Fool has a disclosure policy.
