The Fidelity MSCI Consumer Staples Index ETF (NYSEMKT:FSTA) is gaining attention for its lower fees, broader portfolio, and higher yield compared to the Invesco Food & Beverage ETF (NYSEMKT:PBJ), which has recently outperformed in total return. While both ETFs target the U.S. consumer staples sector, FSTA provides a more diversified approach with 98 holdings, including major players like Walmart and Costco, compared to PBJ’s narrower focus on food and beverage companies with just 31 stocks.
FSTA’s annual expense ratio of 0.08% significantly undercuts PBJ’s 0.61%, and it offers a dividend yield of 2.2% versus PBJ’s 1.5%. This combination of lower costs and higher yield, along with a broader sector exposure that includes household products and personal care, positions FSTA as a compelling choice for income-focused investors.
For market professionals, FSTA’s diversified holdings and established performance could make it a more attractive option, especially if economic conditions improve and consumer spending rises, potentially enhancing its lead over PBJ.
Source: fool.com