The iShares Global Consumer Staples ETF (KXI) is more affordable, larger, and diversified compared to the First Trust Nasdaq Food & Beverage ETF (FTXG), which offers a higher dividend yield but focuses narrowly on U.S. food and beverage stocks. KXI provides global exposure with lower expenses, reducing risk and concentration.

KXI and FTXG both target defensive equity markets, but KXI covers a broader range of consumer staples globally, while FTXG focuses on U.S. food and beverage companies. Depending on investor goals for income, diversification, and sector exposure, one ETF may be more appealing than the other.

KXI has a lower expense ratio of 0.39% compared to FTXG’s 0.60%, with a 1-year return of 11.2% for KXI and -3.5% for FTXG. KXI also has a lower beta and higher AUM, making it more attractive for investors prioritizing total return over income generation.

KXI’s global consumer staples focus includes 96 holdings like Walmart, Costco, and Philip Morris, offering exposure to both defensive and cyclical consumer stocks. In contrast, FTXG holds 31 U.S.-focused holdings in the food and beverage sector, appealing to investors seeking targeted exposure to American staples companies.

KXI’s long track record, international reach, and broader holdings help mitigate regional risks and sector-specific shocks, making it suitable for investors seeking diversification and stability. FTXG’s concentrated U.S. exposure to food and beverage companies may attract those looking for targeted sector exposure within defensive stocks.

Read more at Yahoo Finance: KXI Charges Lower Fees, While FTXG Provides More Income