ETF Talk: Sink Your Teeth into PBJ

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

When most people think of the agricultural sector, farming is most likely to come to mind. However, by focusing on only production, people miss the end result of consumption. There are relatively few farmers producing food, but everyone eats it. An exchange-traded fund which profits from this reality is PowerShares Dynamic Food & Beverage (PBJ).

This non-diversified exchange-traded fund (ETF) with a humorous ticker symbol seeks investment results which, before fees and expenses, correspond generally to the performance of an index that tracks 30 U.S. food and beverage companies. These companies are involved in the manufacture, sale or distribution of food and beverages, agricultural products and products related to the development of new food technologies.

PBJ has done very well so far this year, rocketing more than 20%. Investors looking to gain additional income can sink their teeth into the ETF’s solid 1.42% dividend yield. With PBJ in an evergreen industry, since people always need to eat, the fund should continue to do reasonably well amid an economic slowdown.

The vast majority of PBJ’s assets, 83.78%, are invested in the consumer defensive sector, while the remainder of the fund’s investment is in the consumer cyclical, 11.23%, and basic materials, 4.99%, sectors. In terms of individual companies, PBJ’s top ten holdings comprise 45.62% of its total assets. The top seven of these are well-known household names: Mondelez International, Inc. (formerly part of Kraft Foods) (MDLZ), 5.10%; The Hershey Company (HSY), 5.04%; Monsanto Company (MON), 4.99%; General Mills, Inc. (GIS), 4.98%; Kellogg Company (K), 4.95%; PepsiCo, Inc. (PEP), 4.93%; and Whole Foods Market, Inc. (WFM), 4.90%.

Exclusive  Five Defense Stocks to Buy as Ukraine Fights to Preserve Its Freedom

While most companies tied to the agricultural sector move up and down in conjunction with harvest season and the success of a particular crop, PBJ is largely immune to this volatility due to the previously stated need for people to eat, regardless of the economy. This stability should mean continued profits for funds like PBJ and, by extension, those who invest in them. Dig in.

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to email me by clicking here. You just may see your question answered in a future ETF Talk.

share on:
share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor