Looking for broad exposure to the Consumer Discretionary – Leisure and Entertainment segment of the equity market? You should consider the Invesco Leisure and Entertainment ETF (PEJ), a passively managed exchange traded fund launched on June 23, 2005.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary – Leisure and Entertainment is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
The fund is sponsored by Invesco. It has amassed assets over $350.98 million, making it one of the larger ETFs attempting to match the performance of the Consumer Discretionary – Leisure and Entertainment segment of the equity market. PEJ seeks to match the performance of the Dynamic Leisure & Entertainment Intellidex Index before fees and expenses.
The Dynamic Leisure & Entertainment Intellidex Index is comprised of stocks of U.S. leisure and entertainment companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.1%.
It is important to delve into an ETF’s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector — about 57.2% of the portfolio. Telecom and Industrials round out the top three.
Looking at individual holdings, Royal Caribbean Cruises Ltd (RCL) accounts for about 6.06% of total assets, followed by Doordash Inc (DASH) and Sysco Corp (SYY).
The top 10 holdings account for about 46.3% of total assets under management.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source au.finance.yahoo.com ’
