iShares vs. First Trust ETFs: Which Consumer Staples ETF Is the Better Buy and Hold?
Broader diversification or targeted food sector focus? Compare how these two funds stack up on cost, risk, and portfolio makeup.
iShares vs. First Trust ETFs: Which Consumer Staples ETF Is the Better Buy and Hold?
Overview
Both iShares U.S. Consumer Staples ETF (NYSEMKT:IYK) and First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) prioritize defensive stability with their consumer staples exposure, but their reach within the market differs significantly. While IYK serves as a broad proxy for the entire consumer staples sector, including household products and tobacco, FTXG specifically targets food and beverage manufacturers. This results in distinct risk-return profiles despite their shared focus on non-discretionary consumer goods.
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 iShares fund is the more affordable option with an expense ratio of 0.38%, which may appeal to cost-conscious investors compared to the 0.60% charged by the First Trust fund. While the First Trust fund currently provides a slightly higher payout with a dividend yield of 2.80%, investors may weigh this against its higher carry cost.
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Originally published at www.fool.com.
