Invesco Food & Beverage ETF

Invesco Food & Beverage ETF (PBJ) is an index fund that holds about 30 U.S. food and beverage companies, from Coca-Cola and Monster Beverage to Kroger and Corteva, by tracking the Dynamic Food & Beverage Intellidex Index. It offers a narrower, food-focused slice of consumer staples than broad sector funds. But at 0.63% a year, it costs more than all eight similar funds compared, including 0.08% for XLP.

• Over the year to Oct 27, 2026, PBJ returned +7.0%, 6th of 9 among similar funds.
• Its 5-year annualized return was +4.0%.
• Its worst full calendar year was 2025 (-1.9%); its best was 2021 (+26.9%).
• The deepest fall in its price history was 15.8% (Apr 20, 2022 to Oct 12, 2023), recovered by Mar 13, 2024.

As of Jul 31, 2026, the fund held 30 securities; the ten largest made up 46.83% of assets. It also reported 11.75% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors added a net $18.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -4.82%, -1.15%, +1.21%.

The fund tracks the Dynamic Food & Beverage Intellidex Index, which ICE Data Indices, LLC compiles and maintains. The index holds 30 U.S. companies that mainly make, sell or distribute food, drinks or farm products, or develop new food technologies. That covers crop and livestock suppliers, packaged food and drink makers, grocery stores and wholesalers, and restaurants and coffeehouses. Tobacco companies and pet supply stores are excluded. As of June 30, 2026, index members ranged from $1.1 billion to $350 billion in market value.

The fund uses "full replication." This means it buys every stock in the index in roughly the same proportions. As of July 31, 2026, the largest positions were Monster Beverage (5.6%), Coca-Cola (5.5%), Starbucks (5.2%), Archer-Daniels-Midland (5.1%) and Corteva (5.0%). The top ten made up 46.8% of assets. The fund is "non-diversified," so the law lets it put more money into a few companies than a diversified fund could.

Because it follows the index, the fund won't sell a lagging stock unless the index drops it. Its portfolio turnover was 107%. That is roughly the same as replacing every holding once in a year, and it adds trading costs that the expense ratio doesn't show.

• PBJ charges 0.63% a year, versus an average of 0.36% for the similar funds below (9th of 9, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.01% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $64 in the first year and $797 over 10 years (assuming a 5% annual return).

It is a narrow, non-diversified 30-stock bet on one industry, so it fits best as a small add-on to broader core holdings.

PBJ could add a tilt toward food and drink companies, whose sales often hold up when the economy slows. Its downturn record is mixed. Price figures start in June 2020, so 2008 isn't covered, but the prospectus shows an 18.65% loss in the first quarter of 2020. In the 2022 bear market, it fell 14.4% between April and June. That slide deepened to 15.8% by October 2023, and the fund didn't regain its April 2022 high until March 2024. Its worst calendar year in the prospectus record was 2018, at -10.78%. Someone selling in such a stretch would have locked in losses.

Income is modest: a 1.24% trailing 12-month yield as of October 27, 2026, paid quarterly. At 0.63% a year, costs come to $797 over 10 years in the SEC's $10,000 example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.