Food Industry ETF

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.

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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?

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