Invesco Food & Beverage ETF (NYSEMKT:PBJ) offers greater liquidity and lower historical drawdown, whereas First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) may appeal to income-focused investors due to its higher trailing dividend yield.

The Invesco fund tracks a quantitative index that selects 30 stocks based on share price trajectory and earnings expansion. Meanwhile, the First Trust fund follows the Nasdaq US Smart Food & Beverage Index to provide targeted exposure to domestic companies involved in the production and distribution of food items.

Snapshot (cost & size)

Metric	FTXG	PBJ
Issuer	First Trust	Invesco
Share price	$22.37 (as of 2026-07-09)	$47.94 (as of 2026-07-09)
Expense ratio	0.60%	0.61%
One-year return (as of 2026-07-09)	3.20%	1.80%
Dividend yield	2.60%	1.27%
Beta	0.39	0.48
AUM	$23.7 million	$108.2 million

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The one-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

With expense ratios of 0.60% and 0.61%, respectively, these funds are priced nearly identically. However, a significant yield gap exists, as the First Trust fund offers more than double the trailing payout of its Invesco counterpart.

Performance & risk comparison

Metric	FTXG	PBJ
Max drawdown (five yr)	(21.70%)	(15.80%)
Growth of $1,000 over five years (total return)	$1,001	$1,242

What's inside

Invesco Food & Beverage ETF (PBJ) maintains a portfolio of 31 holdings, with 86.00% of its assets concentrated in the consumer defensive sector. Its quantitative methodology evaluates companies based on fundamental quality and executive actions; its largest positions include Monster Beverage (NASDAQ:MNST) at 5.45%, Corteva (NYSE:CTVA) at 5.39%, and Coca-Cola (NYSE:KO) at 5.19%. It was launched in 2005. Invesco Food & Beverage ETF has paid $0.61 per share over the trailing 12 months, which, at its recent ~$47.94 share price, yields 1.30%.

First Trust Nasdaq Food & Beverage ETF (FTXG) also holds 31 stocks and allocates 87.00% to consumer defensive names. It targets a 95.00% correlation with its underlying index, and its top holdings include Archer-Daniels-Midland (NYSE:ADM) at 9.74%, Coca-Cola (NYSE:KO) at 8.56%, and Kraft Heinz (NASDAQ:KHC) at 8.48%. It was launched in 2016. First Trust Nasdaq Food & Beverage ETF has paid $0.58 per share over the trailing 12 months, which, at its recent ~$22.37 share price, yields 2.60%.

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buy

The Invesco Food & Beverage ETF (PBJ) and the First Trust Nasdaq Food & Beverage ETF (FTXG) are both defensive sector exchange-traded funds (ETFs). Here is how they measure up to one another.

First, there’s PBJ. The fund tracks the Dynamic Food & Beverage Intellidex Index, which uses a quantitative, rules-based strategy to select stocks and allocates them based on a tier-weighting system. As a result, PBJ includes a wide range of stocks across the food & beverage subsector. Iconic brands like Starbucks, Coca-Cola, and PepsiCo are among its top 15 holdings, along with Kroger, Freshpet, and Aramark. As one might expect, PBJ pays a dividend. Its current yield of 1.27% isn’t enormous, but it is enough to keep income-oriented investors interested. Turning to fees, PBJ’s expense ratio is 0.61%, which is above average.

Then, there’s FTXG. This fund offers a slightly different approach to coverage of the food & beverage subsector. FTXG tracks the Nasdaq U.S. Smart Food & Beverage Index, another rules-based quantitative index. As a result, FTXG leans slightly more towards large and megacap stocks. Archer-Daniels-Midland, Coca-Cola, Kraft Heinz, Mondelez, and PepsiCo alone represent approximately 43% of the fund’s overall holdings. The fund’s expense ratio of 0.60% is nearly identical to PBJ, while its dividend yield of 2.60% is higher.

Turning to performance, PBJ has delivered better total returns over the last 10 years. PBJ has recorded a total return of 69%, with a compound annual growth rate (CAGR) of 5.5% since 2016. FTXG, meanwhile, has generated a total return of 38%, equating to a CAGR of 3.4%. The S&P 500, however, has outperformed both funds, with a total return of 308% and a CAGR of 15.5%.

In summary, investors seeking out defensive exposure via the food & beverage industry may wish to consider these two ETFs. Ultimately, however, these funds are not for every investment portfolio. Their relatively high expense ratios, focus on the food & beverage industry, and long-term underperformance relative to the S&P 500 mean these funds’ appeal will remain limited to investors seeking exposure to this niche of the stock market. PBJ has offered better long-term performance; however, income-oriented investors may value FTXG’s higher dividend yield.

Jake Lerch has positions in Coca-Cola. The Motley Fool has positions in and recommends Freshpet, Monster Beverage, and Starbucks. The Motley Fool recommends Kraft Heinz and Kroger. The Motley Fool has a disclosure policy.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.