The post Best Restaurants ETFs by Marc Guberti appeared first on Benzinga. Visit Benzinga to get more great content like this.
Invest in the best restaurants ETF today with Interactive Brokers.
Restaurants are a fundamental component for many areas that drum up business and bring communities together. According to an ICSC survey, nearly 163 million people dine out at least once a week. This consistent habit has helped restaurants reach customers and expand their market share. Investors can profit from the growing restaurant industry by investing in restaurant ETFs.
window.LOAD_MODULE_LAYOUT = true;
Table of contents
[Show]
5 Best Restaurants ETFs
Some restaurant ETFs are better than others. These are five of the best restaurant ETFs to consider.
| Symbol | Company | % Change | Price | Dividend Yield | Invest |
|---|---|---|---|---|---|
| PEJ | Invesco Dynamic Leisure and Entertainment ETF |
+ 0%
|
$42.81 | N/A | Buy stock |
| EATZ | AdvisorShares Restaurant ETF |
+ 0%
|
$22.17 | N/A | Buy stock |
| FDIS | Fidelity MSCI Consumer Discretionary Index ETF |
+ 0%
|
$74.69 | N/A | Buy stock |
| XRT | SPDR S&P Retail ETF |
+ 0%
|
$67.16 | N/A | Buy stock |
| FTXG | First Trust Nasdaq Food & Beverage ETF |
+ 0%
|
$26.83 | N/A | Buy stock |
1. Invesco Dynamic Leisure and Entertainment ETF (NYSEARCA: PEJ)
Invesco Dynamic Leisure and Entertainment ETF (ARCA:PEJ)
42.810
0
[0%]
–
34.37 – 43.28
0.00K
0.00K/89.72K
0.00K
0.00K
/0%
0.000
0.00K
The Invesco Dynamic Leisure and Entertainment ETF is based on the Dynamic Leisure & Entertainment Intellidex and focuses on companies in the leisure and entertainment industry. The fund invests in several restaurants and businesses that benefit from the restaurant industry’s success. The fund has generated an annualized return of 13.58% over the past three years and has a 0.55% expense ratio. The fund’s top three holdings are Marriott International (5.20%), Booking Holdings (5.10%) and Fox Corp. (4.97%). Restaurant investors may be happy to see Sysco (4.91%) and Chipotle (4.72%) as the fourth and fifth largest holdings of the fund, respectively.
2. AdvisorShares Restaurant ETF (NYSEARCA: EATZ)
–
0 – 22.44
0.00K
0.00K/1.04K
0.00K
0.00K
/0%
0.000
0.00K
The AdvisorShares Restaurant ETF is the only fund exclusively invested in the restaurant and food service industry. Other ETFs also invest in other methods of entertainment that align with restaurants, but this ETF is a pure play. The fund has generated an 18.95% return year-to-date and has a 0.99% expense ratio. The fund’s top three holdings are Bloomin’ Brands (6.08%), Restaurant Brands Intern (5.73%) and Arcos Dorados Holdings (5.63%).
3. Fidelity MSCI Consumer Discretionary Index ETF (NYSEARCA: FDIS)
Fidelity MSCI Consumer Discretionary Index ETF (ARCA:FDIS)
74.690
0
[0%]
–
55.4 – 77.03
0.00K
0.00K/65.00K
0.00K
0.00K
/0%
0.000
0.00K
The Fidelity MSCI Consumer Discretionary Index ETF invests in restaurants and other companies. The fund has generated an annualized return of 12.41% over the past five years and has a 0.084% expense ratio. The fund focuses on large-cap stocks and has Amazon (22.43%), Tesla (15.33%) and The Home Depot (6.51%) as its top holdings. McDonald’s and Starbucks are also among the company’s Top 10 holdings.
4. SPDR S&P Retail ETF (NYSERACA: XRT)
–
55.33 – 75.78
0.00K
0.00K/5.43M
0.00K
0.00K
/0%
0.000
0.00K
The SPDR S&P Retail ETF invests across the retail industry and gives investors exposure to some restaurant stocks. The fund has over $460 million in assets under management and a 0.35% expense ratio. The fund has generated annualized returns of 16.11% over the past three years. The company’s top holdings are Carvana (3.09%), Boot Barn Holdings (1.64%), and Autonation (1.57%). Grocery Outlet Holdings and Sprouts Farmers Market are among the fund’s top 10 positions.
5. First Trust Nasdaq Food & Beverage ETF (NASDAQGM: FTXG)
First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG)
26.833
0
[0%]
–
24.84 – 28.24
0.00K
0.00K/10.96K
0.00K
0.00K
/0%
0.000
0.00K
Restaurants rely on food, beverages and excellent service to turn first-time customers into returning customers. This ETF gives investors exposure to food and beverage companies. The top three holdings are Mondelez International (8.75%), Pepsi (8.42%) and Coca-Cola (8.10%). You won’t find restaurants on the list, but restaurants rely on many of these companies to provide food for their customers. The fund has a 0.60% expense ratio and has generated an annualized return of 12.58% over the past three years.
What is a Restaurant ETF?
A restaurant ETF is a fund that spreads its capital across stocks in the restaurant industry. A professional oversees the fund to make sure capital is properly dispersed across opportunities. Some stocks in the fund give investors direct exposure to restaurant chains. These funds may also have exposure to businesses that service restaurants but do not have their own restaurants.
Benefits of Investing in Restaurant ETFs
Investing in restaurant ETFs gives you a diversified portfolio of stocks set to benefit from the growing restaurant industry. Millions of people eat out each week, and some people visit the same restaurant several times each month. Some restaurants produce stable cash flow and operate under reliable profit margins, but some investments are better than others. A professional fund manager will assess the restaurant industry and the investment opportunities to increase the likelihood of profiting from the industry’s success.
Where to Invest in Restaurant ETFs
Investors can choose from several brokers to invest in restaurant ETFs. You should consider the broker’s fees and features before making a decision. If you are not sure which broker to use, these are some of the top choices to consider.
window.LOAD_MODULE_PRODUCTS_TABLE = true;
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
Best For
- Access to international markets
- Active traders
- Sophisticated investors
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
Magnifi is an intelligently designed marketplace that allows investors to access data-backed information about various investment opportunities. The company combines standard brokerage tools with artificial intelligence (AI) to promote financial competence. Magnifi distinguishes itself from the crowd by offering an AI-powered search feature and an AI-powered investment assistant. Magnifi offers a technology-forward platform that aims to promote confident and capable long-term financial investments.
Best For
- Long-term investors
- Individuals interested in personalized assistance
- New investors that are eager to learn how to start investing
- Access to an AI-powered investing assistant with a Magnifi Personal account
- Commission-free investing
- Over 15,000 possible investments
- Available mobile application
- Limited methods of communication with customer service
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
Best For
- Active traders
- Intermediate traders
- Advanced traders
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Intuitive trading platform with technical and fundamental analysis tools
- Does not support trading in mutual funds, bonds or OTC stocks
Robinhood is a broker designed for traders who want a simple and easy-to-use platform. It takes out all the bells and whistles that can be confusing to the modern day trader, serving as the perfect place for beginners to learn the markets. The interface is intuitive and easy to master, streamlined to ensure you don’t get distracted as you build a portfolio. Though advanced traders might like more thorough analysis tools, Robinhood gives you everything you need to start trading and learn the ropes.
Best For
- Beginner traders
- Mobile traders
- Streamlined, easy-to-understand interface
- Mobile app with full capabilities
- Can buy and sell cryptocurrency
- Fewer analysis tools than most
This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.
Best For
- Novice investors
- Retirement savers
- Day traders
- World-class trading platforms
- Detailed research reports and Education Center
- Assets ranging from stocks and ETFs to derivatives like futures and options
- Thinkorswim can be overwhelming to inexperienced traders
- Derivatives trading more costly than some competitors
- Expensive margin rates
Diversify Your Portfolio with Restaurant ETFs
Restaurant ETFs allow investors to diversify their funds across several investments. Instead of relying on one restaurant stock, you can have several stocks that all benefit from the industry. Restaurant ETFs trim your research and can help you achieve similar returns as buying individual restaurant stocks and monitoring them on your own.
Frequently Asked Questions
What is the largest food ETF?
The First Trust Nasdaq Food & Beverage ETF is the largest food ETF.
Is there an index fund for fast food?
EATZ offers investors exposure to several restaurants, including many fast food joints.
Is Costco in an ETF?
Costco stock is included in several ETFs, such as ETFs that mirror the S&P 500.
Best Restaurants ETFs Methodology
The best restaurant ETF methodology involved finding ETFs that give investors direct or indirect exposure to restaurants. Each fund’s performance, expense ratio and holdings were considered as part of this methodology.
The post Best Restaurants ETFs by Marc Guberti appeared first on Benzinga. Visit Benzinga to get more great content like this.
