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. Pharmaceutical Industry ETF

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

    A sector of the economy that consists of businesses that sell ...
  3. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  4. Consumer Staples

    Essential products such as food, beverages, tobacco and household ...
  5. Consumer Packaged Goods - CPG

    A type of good that is consumed every day by the average consumer. ...
  6. Sector ETF

    A class of exchange-traded fund that invests in the stocks and ...
Related Articles
  1. An Inside Look At ETF Construction
    Mutual Funds & ETFs

    An Inside Look At ETF Construction

  2. Consumer Spending As A Market Indicator
    Markets

    Consumer Spending As A Market Indicator

  3. Tips For Recession-Proofing Your Portfolio
    Bonds & Fixed Income

    Tips For Recession-Proofing Your Portfolio

  4. A Guide To Investing In Consumer Staples ...
    Options & Futures

    A Guide To Investing In Consumer Staples ...

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center