Better Consumer Staples ETF: the iShares IYK vs. First Trust's Food and Beverage-Focused FTXG
IYK offers broader sector exposure with lower costs and stronger five-year returns, while FTXG provides a narrower food-focused strategy for specialized investors.
Overview
The iShares U.S. Consumer Staples ETF (NYSEMKT:IYK) offers broad sector exposure and lower costs, while the First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) provides a targeted play on food and beverage producers.
Investors seeking defensive equity exposure often turn to consumer staples to anchor their portfolios during periods of market volatility. This comparison examines whether a broad-based staples approach or a specialized niche in the food and beverage industry better suits your investment goals, considering differences in cost, liquidity, and portfolio concentration.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.