iShares vs. First Trust ETFs: Which Consumer Staples ETF Is the Better Buy and Hold?

Sarah Sidlow, The Motley Fool

Tue, June 23, 2026 astatine 7:22 AM CDT 4 min read

Both iShares U.S. Consumer Staples ETF (NYSEMKT:IYK) and First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) prioritize antiaircraft stableness with their user staples exposure, but their scope wrong the marketplace differs significantly. While IYK serves arsenic a wide proxy for the full user staples sector, including household products and tobacco, FTXG specifically targets nutrient and beverage manufacturers. This results successful chiseled risk-return profiles contempt their shared absorption connected non-discretionary user goods.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The iShares money is the much affordable enactment with an disbursal ratio of 0.38%, which whitethorn entreaty to cost-conscious investors compared to the 0.60% charged by the First Trust fund. While the First Trust money presently provides a somewhat higher payout with a dividend output of 2.80%, investors whitethorn measurement this against its higher transportation cost.

Performance & hazard examination

What's wrong

The iShares U.S. Consumer Staples ETF provides vulnerability to 54 holdings crossed user antiaircraft (85%), healthcare (11%), and basal materials (3%) sectors. Its largest positions see Procter & Gamble astatine 13.74%, The Coca-Cola Company astatine 12.34%, and Philip Morris International astatine 10.84%. Launched successful 2000, this money offers a diversified look astatine the staples market, encompassing everything from household goods to brushed drinks. It has a trailing-12-month dividend of $1.90 per stock and targets companies that mostly support request careless of economical cycles.

In contrast, the First Trust Nasdaq Food & Beverage ETF is overmuch much concentrated, holding lone 30 positions with 94% successful user defensive, 4% successful basal materials, and 2% successful industrials. Its largest positions see Archer-Daniels-Midland Company astatine 9.58%, Coca-Cola astatine 8.45, and Mondelez International at 8.38%. This money was launched successful 2016 and follows an index-tracking strategy to replicate the Nasdaq US Smart Food & Beverage Index. It has paid $0.61 per stock implicit the trailing 12 months.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.