PBJ: Value, Quality, And An Aura Of Defensiveness

Vasily Zyryanov profile picture
Vasily Zyryanov
1.86K Followers

Summary

  • PBJ is a high-turnover passively-managed fund designed to track the Dynamic Food & Beverage Intellidex Index.
  • The principal conclusion of the analysis I performed is that the factor mix PBJ has at the moment makes it a Buy.
  • Of course, there are downsides. The primary vulnerability is its expense ratio of 63 bps.

Fajitas Bowls

lisegagne/E+ via Getty Images

In the article on the iShares U.S. Consumer Staples ETF (IYK), I briefly outlined the reasons for a conservative view on the defensive names that investors are likely following closely amid the stagflation

Quant data for PBJ holdings

Created by the author using data from Seeking Alpha and the fund

PG EV/EBITDA

Seeking Alpha

Quant data for PBJ holdings

Created by the author using data from Seeking Alpha and the fund

Quant data for PBJ holdings

Created by the author using the data from the fund and Seeking Alpha

Chart
Data by YCharts

Chart
Data by YCharts

This article was written by

Vasily Zyryanov profile picture
1.86K Followers
Vasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor's primary goal to delve deeper and uncover if the market's current opinion is correct or not.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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