Food Industry ETF

AAA

DEFINITION of 'Food Industry ETF'

An exchange-traded fund that invests in food and beverage companies, with the objective of matching the investment performance of an underlying index. While there are very few ETFs that invest only in this sector, food and beverage companies account for a significant proportion of the holdings of consumer staples ETFs, which far outnumber food ETFs.

INVESTOPEDIA EXPLAINS 'Food Industry ETF'

The sector encompasses companies that manufacture and distribute a wide range of food and beverages, from cereal and coffee to doughnuts and pizza, and also includes the giant U.S. fast-food chains that have a global presence.


As a consumer staple, the food and beverage sector is relatively immune to economic cycles. A food and beverage ETF would typically include companies with some of the best-known consumer brands.

RELATED TERMS
  1. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  2. Pharmaceutical Industry ETF

    A sector-following fund that invests in developers and manufacturers ...
  3. Consumer Discretionary

    A sector of the economy that consists of businesses that sell ...
  4. Consumer Staples

    Essential products such as food, beverages, tobacco and household ...
  5. Sector ETF

    A class of exchange-traded fund that invests in the stocks and ...
  6. Consumer Packaged Goods - CPG

    A type of good that is consumed every day by the average consumer. ...
RELATED FAQS
  1. What impact is the farm-to-table movement having on the food & beverage industry?

    The farm-to-table movement is having a negative effect on the large companies in the food and beverage industry while creating ... Read Full Answer >>
  2. Can an investor buy leveraged ETFs that track the automotive sector?

    As of 2015, no leveraged exchange-traded funds, or ETFs, track the automotive sector. However, a non-leveraged ETF tracks ... Read Full Answer >>
  3. What are some examples of smart beta ETFs that use passive and active management?

    There are a number of smart beta exchange-traded funds (ETFs) that use passive and active management, including the WisdomTree ... Read Full Answer >>
  4. What is the difference between the QQQ ETF and other indexes?

    QQQ, previously QQQQ, is unlike indexes because it is an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index. The ... Read Full Answer >>
  5. What is the QQQ ETF?

    The PowerShares QQQ, previously known as the QQQQ, is a widely held and traded exchange-traded fund (ETF) that gives investors ... Read Full Answer >>
  6. What are the main benchmarks that track the banking sector?

    The appropriate benchmarks for tracking banking sector performance depend on the type of banking. For instance, commercial-only ... Read Full Answer >>
Related Articles
  1. Mutual Funds & ETFs

    An Inside Look At ETF Construction

    If you're an investor who likes to understand how and why your investment products work, this article is for you!
  2. Markets

    Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.
  3. Bonds & Fixed Income

    Tips For Recession-Proofing Your Portfolio

    Find out what to do when the sun sets on a burgeoning market.
  4. Options & Futures

    A Guide To Investing In Consumer Staples

    These companies may not be flashy but they offer investors structure and diversification.
  5. Economics

    Evaluating Grocery Store Stocks

    Retail grocers are no longer a homogeneous group selling products in the same manner. Find out how to evaluate these companies.
  6. Professionals

    Why Investors Are Bailing on Bond ETFs

    Investors are fleeing bond ETFs. Should you follow the herd? Hint: It depends on the type of bond.
  7. Chart Advisor

    How Investors are Profiting from Cyber Crime Fear

    An ETF that has seen significant gains this year in the growing field of cyber security, and the threat and fear of cyber attacks and cyber crime.
  8. Professionals

    Indexing vs. Stock Picking: Which is Better Now?

    Indexing and stock picking both have positive and negative features. One has outperformed the other historically, but which is the better option right now?
  9. Chart Advisor

    ChartAdvisor for June 26 2015

    Weekly technical summary of the major U.S. indexes.
  10. Stock Analysis

    Bargains Still Abound in European Stocks

    For investors looking for value and growth potential, Europe is it. Here are some ETFs to consider.

You May Also Like

Hot Definitions
  1. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  2. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  3. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  4. Current Account Deficit

    A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services ...
  5. International Monetary Fund - IMF

    An international organization created for the purpose of: 1. Promoting global monetary and exchange stability. 2. Facilitating ...
  6. Risk-Return Tradeoff

    The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!