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.

BREAKING DOWN '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. Consumer Goods Sector

    A category of stocks and companies that relate to items purchased ...
  2. ETF Of ETFs

    An exchange-traded fund (ETF) that tracks other ETFs rather than ...
  3. Consumer Staples

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

    Exchange-traded funds (ETFs) that invest in either the consumer ...
  5. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  6. Inverse ETF

    An exchange-traded fund (ETF) that is constructed by using various ...
Related Articles
  1. Trading

    Why Now is the Time for Food and Beverage Stocks

    As volatility rears its ugly head, it's natural to investigate stable sectors such as food and beverages. Here's an appropriately-named ETF to consider.
  2. Investing

    Consumer Staples ETFs to Date 2016 Performance Review (XLP, VDC)

    Find out how the consumer staples sector is performing year-to-date in 2016, and which are its best- and worst-performing exchange-traded funds.
  3. Investing

    Consumer Staples ETFs Are Attracting Assets in 2016 (XLP, VDC)

    Learn about how the consumer staples sector reacts in times of market volatility and discover which ETFs in this sector have seen the largest inflows in 2016.
  4. Investing

    XLP Vs. VDC: Comparing Consumer ETFs

    Discover the Consumer Staples Select Sector SPDR ETF and the Vanguard Consumer Staples ETF, which are exchange-traded funds (ETFs) following consumer staples indexes.
  5. Trading

    Food And Beverage Stocks That Are On The Rise

    We'll take a look at several food and beverage companies that could be worth a closer look heading into 2016.
  6. Investing

    Parched For Profits? Try Beverage Stocks

    For diversification and profit potential, add a different kind of "liquidity" to your portfolio.
  7. Investing

    ETF Investing: Is XLP Consumer Staples Still a Buy?

    Get a review of State Street's Consumer Staples Select Sector SPDR ETF, and find out why this ETF may be a wise buy for investors in 2016.
  8. Investing

    6 ETFs to Fight Your Recession Jitters

    Are you worried about a recession? If so, consider these 6 ETFs.
  9. Investing

    Will Staples ETFs Continue to be a Safe Haven

    Consumer staples stocks and ETFs that track them can be a haven during tough market times.
  10. Investing

    How To Pick The Best ETF

    Of the hundreds of exchange-traded funds on the market, some are bound to fail. Learn how to pick the best of the bunch.
RELATED FAQS
  1. How does the risk of investing in the food and beverage sector compare to the broader ...

    Find out why investing in the food and beverage sector is generally considered to be less risky than investments in the broader ... Read Answer >>
  2. What countries are driving most of the growth of the food and beverage sector?

    Learn about the countries, primarily emerging market nations, that are currently driving most of the growth in the food and ... Read Answer >>
  3. What are some of the most common mutual funds that give exposure to the food and ...

    Take a look at some of the most popular mutual funds that investors consider for obtaining exposure to the food and beverage ... Read Answer >>
  4. What is the historic average annual return of the food and beverage sector?

    Examine the current state of the food and beverage sector, along with learning the historical average annual returns for ... Read Answer >>
  5. Are there leveraged ETFs that follow the food and beverage sector?

    Discover whether it is possible for investors to utilize leveraged exchange-traded funds, or ETFs, to access the food and ... Read Answer >>
  6. What is the safest way to invest in the food and beverage industry?

    Find out the safest way to invest in the food and beverage industry, and learn about ETFs that track the food and beverage ... Read Answer >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center