PBJ ETF

This article provides a dashboard with industry metrics in consumer staples and reviews sector ETFs. The most attractive subsector regarding value and quality scores is household products, while the tobacco industry has the worst quality score. We look at Invesco Food & Beverage ETF, a consumer staples ETF focusing on 2 subsectors with a strategy based on fundamentals and momentum.

PBJ tracks a proprietary Index of 30 U.S. stocks in the food and beverage industry. Its expense ratio is 0.57% and the ETF has $113 million in assets under management. In previous reviews, I've identified buying opportunities for those interested in trading PBJ, as its relatively weak quality suggests it's not an appropriate long-term hold. The Index reconstitutes quarterly, meaning short-term opportunities are always possible. However, PBJ's valuation is only slightly better than XLP's, the higher-quality and lower-cost S&P 500 Consumer Staples ETF.

For investors seeking momentum, Invesco Dynamic Food & Beverage ETF PBJ is probably on the radar. The fund just hit a 52-week high and is up 19% from its 52-week low price of $40.05/share.

PBJ tracks an Index of 30 U.S. Food & Beverage stocks. It reconstitutes quarterly, and unfortunately, its five-point discount on forward earnings from August has disappeared. Quality didn't improve either, meaning PBJ is only a growth and momentum play right now. Shareholders should demand more. With a 0.57% expense ratio and a long-term track record that lags XLP by 119%, it's evident the strategy has flaws.

The Consumer Staples sector is performing well, indicating a potentially volatile year ahead. Investing in food and beverage stocks offers stability and growth opportunities. The Invesco Food & Beverage ETF provides exposure to the sector with a diverse range of holdings.

Though the manufacturing sector was in the contraction region in September, the activities hinted improvement. The five manufacturing industries that reported growth in September.

The Invesco Food & Beverage ETF (PBJ) made its debut on 06/23/2005, and is a smart beta exchange traded fund that provides broad exposure to the Consumer Staples ETFs category of the market.

Designed to provide broad exposure to the Consumer Staples - Food & Beverage segment of the equity market, the Invesco Food & Beverage ETF (PBJ) is a passively managed exchange traded fund launched on 06/23/2005.

PBJ tracks an Index of 30 Food & Beverage ETFs selected based on a comprehensive fundamentals-based system. Expenses are high at 0.63%, and unfortunately, long-term results aren't great. That makes PBJ most appropriate for traders looking to profit off short-term opportunities. I believe one exists today, as PBJ offers a solid safety margin compared to the broader market. Over half of PBJ's holdings have reported Q2 earnings so far, so most near-term risk is off the table. What's better is that all companies beat analyst expectations.