First Trust Nasdaq Food & Beverage ETF offers higher distribution yield than Invesco counterpart, though trailing in long-term returns.
First Trust Nasdaq Food & Beverage ETF (FTXG) and Invesco Food & Beverage ETF (PBJ) charge nearly identical expense ratios, differing by just one basis point. However, FTXG provides a distribution yield over 1.00 percentage point higher than PBJ, appealing to income-focused investors.
PBJ, launched in 2005, tracks an index emphasizing momentum, quality, and value, with 31 holdings concentrated in consumer defensives. Its top positions include Archer-Daniels-Midland (ADM), Monster Beverage (MNST), and Mondelez International (MDLZ), and it paid $0.75 per share in dividends over the past year.
Despite similar sector exposure, PBJ has historically delivered stronger total returns, while FTXG’s higher yield may attract investors prioritizing income over capital appreciation.