XLP vs. PBJ: A Staples Showdown (Oy, the Choices!)

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Alright, folks, settle down! We’re diving into the thrilling world of… consumer staples ETFs. Yes, staples. It’s not exactly “Mission: Impossible,” but hey, even Tom Cruise needs groceries. We’re looking at the State Street Consumer Staples Select Sector SPDR ETF (XLP 0.06%) and the Invesco Food & Beverage ETF (PBJ 0.36%). Now, I’ve seen more excitement at a beige convention, but let’s see what these two have to offer. Trust me, the market’s a funny thing. It’s like a vaudeville act – always a surprise, usually disappointing, and occasionally someone throws a tomato.

Both XLP and PBJ are trying to cash in on our insatiable need to… well, not starve. They’re both playing the “defensive” game, which, in market terms, means they’re supposed to hold up okay-ish when everything else is crashing. But there are differences, oh yes, differences. It’s like choosing between a pastrami on rye and a knish. Both are good, but one’s got a little more… oomph.

Snapshot (Cost & Size)

Metric XLP PBJ
Issuer SPDR Invesco
Expense ratio 0.08% 0.61%
1-yr return (as of 2026-02-04) 10.6% 4.1%
Dividend yield 2.4% 1.6%
Beta 0.53 0.56
AUM $16.2 billion $102.5 million

See that expense ratio? XLP is practically giving the money away! PBJ is charging you enough to open a delicatessen. And look at that AUM – Assets Under Management. XLP is a juggernaut, PBJ is… well, let’s just say it’s a charming boutique. It’s like comparing the Metropolitan Museum of Art to a garage sale. Both have stuff, but one’s a little more… substantial.

Performance & Risk Comparison

Metric XLP PBJ
Max drawdown (5 y) -16.31% -15.84%
Growth of $1,000 over 5 years $1,323 $1,293

The numbers tell a story, folks. XLP has been the better performer, and it’s not even close. PBJ isn’t bad, mind you, it’s just… lacking the certain je ne sais quoi. It’s like a perfectly acceptable comedian who doesn’t quite get the big laughs. XLP, on the other hand, is the headliner, bringing down the house.

What’s Inside

PBJ is laser-focused on food and beverage, with 31 companies in its portfolio. Think Corteva Inc (CTVA +0.74%), Sysco Corp (SYY +1.08%), and Monster Beverage Corp (MNST 0.54%). It’s a diverse bunch, even throwing in some basic materials and industrials for good measure. It’s like a salad with everything but the kitchen sink. They rebalance quarterly, which means they’re constantly shuffling things around. It’s a lot of work for a bunch of… well, food and beverages.

XLP, now that’s focus. It’s 100% consumer defensive, with 36 holdings. Walmart Inc (WMT 0.79%), Costco Wholesale Corp (COST 0.94%), and Procter + Gamble Co (PG +0.36) are the big players. It’s a classic defensive tilt, and they don’t mess around with the fluff. It’s like a perfectly tailored suit – simple, elegant, and effective. They know what they’re doing, folks. They really know what they’re doing.

For more guidance on ETF investing, check out the full guide at this link. (Don’t say I didn’t warn you.)

What This Means For Investors

So, what’s the takeaway? XLP is the solid, reliable choice. Low fees, higher income, better performance. It’s like your sensible uncle who always gives you a practical gift. PBJ is… a bit more adventurous. It’s got a niche focus, and it might appeal to investors who are particularly interested in the food and beverage sector. It’s like your eccentric aunt who gives you a taxidermied squirrel. It’s memorable, but not necessarily… useful.

Look, the market is a crazy place. It’s full of surprises, and it’s always changing. But one thing remains constant: people will always need to eat. And that, my friends, is a pretty good investment. Now if you’ll excuse me, I’m going to go find a pastrami on rye. I’ve earned it.

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2026-02-10 18:32