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Posted by
Two Blokes June 4, 2025 -
Filed in
Stock
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10 views
IYK has significant exposure (30%+) to food and beverage companies vulnerable to regulatory changes targeting sugar, seed oils, dyes, and ultra-processed foods. Potential regulatory shifts could drive up input costs, compress margins, and reduce demand, especially for sugary stalwart products like candy, sweet cereals, and soda. A 30% per-capita increase in spending on food in America could lead to 5% volume declines for those stocks overall, challenging the pricing power and growth assumptions of the Fund's major holdings.
