PBJ vs. KXI: Snack Time or Serious Investing?

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Right. So, we’re talking ETFs. Specifically, the Invesco Food & Beverage ETF (PBJ) and the iShares Global Consumer Staples ETF (KXI). Honestly, the names alone are enough to make me crave a biscuit. But let’s try to stay focused. PBJ, bless its heart, is charging a bit of a premium – 0.61% in expenses. It’s all-American, focusing on the stuff we shove in our faces here in the States. KXI, meanwhile, is the worldly one, holding 96 companies globally and asking for a slightly more reasonable 0.39%. Last year? KXI clocked a 14.8% return versus PBJ’s… well, let’s just say 1.0%. It’s not bad, it’s just…understated. Like my dating life.

Both of these funds are supposed to give you a slice of the ‘essential goods’ pie. Things people buy even when, you know, the world is ending. But they go about it differently. PBJ is a curated selection; KXI is more of a ‘everything but the kitchen sink’ approach. We’ll dig into that, because frankly, I’m nosy, and you probably are too.

Snapshot (Cost & Size)

Metric PBJ KXI
Issuer Invesco iShares
Expense ratio 0.61% 0.39%
1-yr return (as of 2026-01-16) 1.0% 14.8%
Dividend yield 1.83% 2.30%
AUM $94.1 million $884.8 million

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The one-year return represents total return over the trailing 12 months.

KXI is just…sensible. Lower fees, slightly better dividend. It’s the friend who always brings a practical gift. PBJ is…aspirational. Like buying a cashmere sweater you can’t really afford. Both have relatively low betas – PBJ at 0.65, KXI at 0.55 – meaning they’re less likely to throw a tantrum when the market has one. Still, I’m always braced for a tantrum. Aren’t you?

Performance & Risk Comparison

Metric PBJ KXI
Max drawdown (5 y) -15.84% -17.43%
Growth of $1,000 over 5 years $1,363 $1,322

What’s Inside

KXI is a global citizen. 96 stocks, covering everything from household names in developed markets to emerging economies. It’s heavily weighted toward consumer defensive – the stuff people need – with a tiny nod to the slightly more frivolous ‘consumer cyclical’ sector. Think Walmart, Costco, Philip Morris International. It’s been around for over 19 years, which, in ETF years, is basically ancient. I feel old just writing that.

PBJ is more…focused. Just over 30 US-listed stocks, selected for momentum and quality within the food and beverage sector. It’s 89% consumer defensive, with a sprinkle of basic materials and consumer cyclicals. Corteva, Monster Beverage, The Hershey Company…it’s a sugar rush waiting to happen. It follows a rules-based index that’s rebalanced quarterly. Efficient. I wish my life was efficient.

For more ETF guidance, apparently there’s a full guide available. I haven’t read it. I prefer to learn through trial, error, and a healthy dose of anxiety.

What This Means for Investors

Over the last 20 years, KXI and PBJ have delivered pretty similar total returns – 7.6% and 7.4% annually, respectively. Honestly? It’s almost boring. So, picking between the two really comes down to preference, rather than one being vastly superior. It’s like choosing between black coffee and coffee with a splash of milk. Both will keep you awake, but one is slightly more…complicated.

If you want pure safety, PBJ – 30 of the strongest US food and beverage companies – is as reliable as it gets. It’s trading at 18 times earnings, which is…reasonable. However, and this is a big however, if you think GLP-1 drugs (the weight loss ones) are going to decimate this industry, this ‘safe’ ETF might not be so safe after all. It’s a bit of a gamble, isn’t it? Everything is.

If you want a bit more growth, higher income, or just a lower expense ratio, KXI is the better pick. But you need to be comfortable owning Walmart and Costco (they make up 18% of the ETF) and accepting a higher P/E ratio of 25. Oh, and nearly 20% of its holdings are in tobacco stocks. Just saying. I have my limits.

Personally, I’d only consider KXI. PBJ’s lofty expense ratio, smaller dividend, and exposure to the GLP-1 risk leave me…unconvinced. I’m not saying GLP-1s will doom the food and beverage industry, but it adds another potential headache I’d rather avoid. It’s about risk management, darling. And a healthy dose of paranoia. KXI just feels…slightly less likely to keep me up at night.

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2026-01-20 02:04