🥗Investing on the Menu: 5 Food Industry ETFs You Should Know

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When you think of investing, you might imagine high-tech companies or electric vehicles. However, some of the best opportunities are in the food industry.

Food is essential for everyone, no matter the economic climate. Whether buying groceries, getting takeout, or dining out, the food industry remains strong. This resilience makes it one of the most dependable sectors in the stock market, especially during uncertain times.

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Why Food Industry ETFs?

Food industry ETFs invest in companies in the food sector, including manufacturers and distributors of food and beverages, alcohol and cigarettes, restaurants, grocery stores, and food-related consumer staples.

Food is a consumer staple, meaning people keep buying it regardless of the economy. Unlike luxury items or expensive electronics, food and beverages rarely see sharp declines in demand. That makes food ETFs an anchor during downturns.

Food ETFs don’t just hold supermarket chains. They include companies involved in production, packaging, restaurants, agricultural technology, and food innovation. By holding an ETF, you get exposure to dozens of food-related businesses without having to pick individual winners.

The food industry includes established giants like PepsiCo and Nestlé, as well as fast-growing innovators in plant-based foods and agri-tech. This mix provides a balance between safety and potential upside.

Think of food ETFs as a balanced plate: some comfort food for stability, and some spicy growth stocks for excitement.

📃Top Food Industry ETFs

Today, we’re slicing into five of the most interesting Food ETFs on the menu, each with its own unique flavour and investment thesis. So, grab a snack (responsibly sourced, of course!), and let’s dig in.

1. Invesco Dynamic Food & Beverage ETF (PBJ)

Inception: 2005-06-23

Expense Ratio: 0.61%

Provider: Invesco

Past 3 Years Annualised Performance: 4.82%

The Invesco Dynamic Food & Beverage ETF $PBJ ( ▲ 0.81% ) is one of the oldest and most recognised ETFs focused on the food sector. Launched in 2005, PBJ includes well-known companies such as Hershey, PepsiCo, and Coca-Cola, as well as various restaurant chains and packaged food manufacturers. This ETF is a strong option for investors seeking broad exposure to the U.S. food and beverage industry, complemented by a strategic approach.

2. First Trust Nasdaq Food & Beverage ETF (FTXG)

Inception: 2016-09-20

Expense Ratio: 0.60%

Provider: First Trust

Past 3 Years Annualised Performance: -1.73%

$FTXG ( ▲ 1.09% ) takes a unique approach to the food and beverage sector by holding about 30 U.S. companies that demonstrate strong size, profitability, and momentum. This makes it an ideal option for investors looking for a well-constructed portfolio of food companies instead of a simple market-cap-weighted selection.

3. AdvisorShares Restaurant ETF (EATZ)

Inception: 2021-04-20

Expense Ratio: 0.99%

Provider: AdvisorShares

Past 3 Years Annualised Performance: 5.22%

For investors who want to move beyond the grocery store and into the dining room, $EATZ ( ▲ 2.14% ) is the only pure-play restaurant ETF available. It is an actively managed fund, meaning a portfolio manager is making the calls on which stocks to buy and sell, rather than just tracking an index. From global chains like McDonald’s and Chipotle to emerging dining brands, EATZ covers companies that feed us outside the home. It is perfect for investors who want a bite of the restaurant scene’s growth potential.

4. Global X AgTech & Food Innovation ETF (KROP)

Inception: 2021-07-12

Expense Ratio: 0.50%

Provider: Global X

Past 3 Years Annualised Performance: -8.75%

Let’s shift our focus from the dining table back to the farm. The Global X AgTech & Food Innovation ETF $KROP ( ▲ 0.21% ) is cantered on the future of agriculture and food production. It includes companies engaged in precision farming, agricultural robotics, vertical farming, and plant-based foods.

KROP is all about innovation. With the global population on the rise and increasing climate concerns, new approaches to food production are essential. This ETF captures the companies that are leading the way in these advancements.

5. iShares Emergent Food and AgTech Multisector ETF (IVEG)

Inception: 2022-04-25

Expense Ratio: 0.47%

Provider: iShares

Past 3 Years Annualised Performance: 3.65%

IVEG is similar to KROP but with a broader, more global lens. It seeks to track an index of companies from both U.S. and non-U.S. markets that are expected to benefit from the creation or use of agricultural technology or innovative food products and services.

This ETF takes a broader approach by including AgTech companies as well as those in IT, software, and industrials that support food innovation. IVEG provides a diversified and cost-effective way to invest in the long-term changes across the food value chain.

🍕Bite-Sized Investing

So, there you have it—a tour of the diverse and delicious world of Food Industry ETFs. From the steady, reliable staples offered by PBJ and FTXG, to the exciting, high-growth potential of the future-focused KROP and IVEG, and the specialised dining play of EATZ, there’s a flavour for every investor’s palate and risk tolerance.

The key takeaway is that “food” as an investment theme is far from monolithic. You can choose your own adventure, whether you prefer the defensive ballast of consumer staples, the cyclical bounce of restaurants, or the disruptive potential of food and agricultural technology.

We hope you enjoyed this brief weekend read about Food Industry ETFs. The market is a vast buffet, and understanding your options is the first step toward building a portfolio that truly meets your financial goals. If you're eager for more insights, analysis, and a sense of community, we invite you to join the ETF UNO newsletter community.

DISCLAIMER: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider consulting with a financial advisor before making investment decisions.