The State Street Consumer Staples Select Sector SPDR ETF (XLP) and the Invesco Food & Beverage ETF (PBJ) are two options for investors interested in consumer staples. XLP offers broad access to large-cap companies at a low cost, while PBJ focuses on food and beverage companies with a more concentrated strategy.
Comparing costs, XLP has an expense ratio of just 0.08%, significantly lower than PBJ’s 0.61%. This means more of your money stays invested when you choose XLP. For those looking for income, XLP also shines with a dividend yield of 2.60%, compared to PBJ’s 1.50%.
In terms of performance, both ETFs show resilience. Over the past year, XLP returned 6.40%, while PBJ was slightly ahead at 6.60%. However, over the last five years, an investment of $1,000 in XLP would have grown to about $1,360, compared to $1,272 for PBJ. This suggests that XLP may offer better long-term value.
Let’s look at what’s inside these ETFs. PBJ, launched in 2005, holds 31 stocks, mostly in the food and beverage sector. Its top positions include Archer-Daniels-Midland (5.87%) and Corteva (5.43%). Meanwhile, XLP focuses more broadly, with 36 holdings primarily in consumer defensives. It features well-known names like Walmart (11.93%) and Costco (9.55%), which have proven their stability in various market conditions.
Both funds have gained traction in 2026 as consumers turned to staples amid economic uncertainty. According to a recent survey, over 70% of investors view consumer staples as a safer investment amidst stock market fluctuations. This reflects a growing trend toward defensive investing.
In summary, XLP stands out for its low cost and strong performance among diverse consumer staples. PBJ caters to those willing to take a more focused, high-fee approach centered on food and beverage. Ultimately, the choice between them depends on individual investment goals and risk tolerance.
