Is iShares US Consumer Staples ETF a Better Buy Than Invesco Food & Beverage?
2026-08-11 19:29
•Dave Kovaleski •The Motley Fool
•••••• ••••••• Axe Cap view
Why South African Investors Should Favor iShares US Consumer Staples ETF Over Invesco Food & Beverage
iShares US Consumer Staples ETF offers better cost efficiency, income, and diversification than Invesco Food & Beverage, relevant for rand-hedged portfolios.
For South Africans looking to add global consumer exposure while managing currency risks, the iShares US Consumer Staples ETF (IYK) stands out against the Invesco Food & Beverage ETF (PBJ). IYK’s lower expense ratio (0.38% vs. 0.61%) means you keep more of your returns — no small thing in rand terms given our higher local costs. Its dividend yield at 2.6% clearly beats PBJ’s 1.3%, providing steadier income to offset ZAR volatility. The broader sector exposure with 53 diversified holdings gives IYK better resilience compared to PBJ’s narrower focus on 31 companies. While the rand’s moves against the USD remain a wildcard, having diversified income and lower costs is a practical hedge. If the US staples sector falters or high inflation hits margins, IYK could underperform. Still, the risk-reward tilt favors it as a global consumer defensive play for South Africans. this is just our opinion and not financial advice
Buy IYK for diversified, cost-efficient global consumer exposure with attractive yield, but keep an eye on USD/ZAR moves. Avoid PBJ given weaker income and concentration risk.
- IYK
- PBJ
- USD/ZAR
- US consumer staples margin pressure
- Rand weakening sharply against USD
6/10
The iShares U.S. Consumer Staples ETF (IYK) outperforms the Invesco Food & Beverage ETF (PBJ) across multiple metrics, including a lower 0.38% expense ratio versus 0.61%, higher 2.6% dividend yield versus 1.3%, and superior 1-year returns of 8.9% versus -1.0%. With 53 diversified holdings across consumer staples, healthcare, and materials versus PBJ's 31 food and beverage-focused companies, IYK offers broader sector exposure and better long-term performance.
Our take is based on reporting first published by The Motley Fool.