Invesco Food and Beverage ETF (NYSEARCA:PBJ - Get Free Report) was the target of a significant growth in short interest during the month of February. As of February 27th, there was short interest totaling 9,471 shares, a growth of 119.8% from the February 12th total of 4,309 shares. Based on an average trading volume of
If you want exposure to the food and beverage industry but aren't interested in picking individual stocks, Invesco Food & Beverage ETF (NYSEARCA:PBJ) offers a direct route.
Consumer staples stocks have a reputation for stability, but they rarely deliver the growth that fuels strong long-term returns.
Invesco Food & Beverage ETF (PBJ) is rated a contrarian buy, despite recent underperformance and sector headwinds. PBJ offers a portfolio of undervalued, defensive food and beverage stocks, with a low P/E ratio and strong dividend growth. Liquidity is limited and technicals show a range-bound chart, but improving RSI signals potential for price recovery toward resistance.
Invesco Food & Beverage ETF is a high-fee, high-turnover food & beverage ETF that selects 30 U.S. securities based on a proprietary factor-driven model. Historically, PBJ has sporadically outperformed the broader Consumer Staples sector, represented by XLP. However, it could never sustain those gains, suggesting problems with the overall strategy. My analysis suggests the primary issue is quality. As such, it's appropriate to demand compensation in the form of substantially better growth and value features.
This article provides a dashboard with industry metrics in consumer staples and reviews sector ETFs. The most attractive subsector regarding value and quality scores is household products, while the tobacco industry has the worst quality score. We look at Invesco Food & Beverage ETF, a consumer staples ETF focusing on 2 subsectors with a strategy based on fundamentals and momentum.
PBJ tracks a proprietary Index of 30 U.S. stocks in the food and beverage industry. Its expense ratio is 0.57% and the ETF has $113 million in assets under management. In previous reviews, I've identified buying opportunities for those interested in trading PBJ, as its relatively weak quality suggests it's not an appropriate long-term hold. The Index reconstitutes quarterly, meaning short-term opportunities are always possible. However, PBJ's valuation is only slightly better than XLP's, the higher-quality and lower-cost S&P 500 Consumer Staples ETF.