“PBJ is a unique as it offers small, mid and large cap exposure to consumer staples and some consumer discretionary stocks. While packaged foods is nearly half of the portfolio, restaurants and soft drinks make up meaningful exposure as well. Though relatively expensive, the ETF outperformed the S&P 500 consumer staples index in 2013 and 2014,” said S&P Capital IQ Director of Mutual Fund and ETF Research Todd Rosenbluth in an email to ETF Trends.
PBJ is an alternatively-weighted ETF. Second, due to the ETF’s focus on food and beverage names, PBJ features no exposure to the other usual suspects of the staples sector, such as household goods makers, tobacco companies or retailers like Wal-Mart (NYSE: WMT). [A Rush to Staples ETFs]
PBJ tracks the Dynamic Food & Beverage Intellidex Index, which evaluates possible constituents based on earnings and price momentum while also employing a quality filter and screening for management action and value.
PowerShares Dynamic Food & Beverage Portfolio
