Wednesday November 09, 2011
by Doug Fabian, editor The ETF TraderWe have been looking for bastions of safe investing in a market where uncertainty and fear prevail.
PowerShares Dynamic Food & Beverage ETF (
PBJ) is one such fund that offers a measure of protection from a weak economy.
The ETF seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Food & Beverage IntellidexSM Index.
The Intellidex consists of stocks of 30 U.S. food and beverage companies that manufacture, sell or distribute food and beverage products, agricultural products and products related to the development of new food technologies.
This sector-specific ETF gives you a chance to invest in the relatively stable performance of companies that provide food, a basic necessity for our survival.
PBJ lets you to take advantage of a very specific safe-haven sector. Even though consumers may cut spending, food is something that we can’t take out of our budgets.
While we may go to restaurants less frequently or skip filet mignon in favor of hamburger, visits to the grocery store will continue. PBJ gives us a way to profit from the basic human need for food.
PBJ’s top holdings include: Mead Johnson Nutrition, H.J. Heinz, McDonald’s, Kraft Foods, Archer-Daniels Midland, The Kroger Co, and Coca-Cola Co.
As news reports continue to reflect uncertainty about the economic climate in Europe and elsewhere, people still are buying bread, butter and milk. That’s why you should take a look at PBJ for an investment in the necessities.
Learn more about this financial newsletter at Doug Fabian's ETF Trader.
