2 Leisure ETFs Could See Gains As The Post-COVID Summer Approaches

 | May 26, 2021 10:17

While the northern hemisphere is getting ready to welcome summer in less than a month, warmer weather combined with increased vaccination levels means there will be more people enjoying leisure activities, likley out of their homes, in the coming months.

COVID-19 has affected sectors differently. For instance, travel, leisure and hospitality industries were among the worst hit initially. But positive vaccine developments have provided tailwinds for the recent up-move in the shares of many companies in these segments.

In the U.S., several indices enable Wall Street to gauge the developments in these segments. They include:

Dow Jones Travel & Leisure — up over 9% year-to-date (YTD);

Dow Jones Travel & Tourism — up over 5% YTD;

Dow Jones Airlines — up over 27% YTD;

Dow Jones Gambling — up over 10% YTD;

Dow Jones Broadcasting & Entertainment — up over 2% YTD;

Despite robust stock returns so far within these sectors, the upcoming summer months could potentially lead to more economic activity, providing catalysts for additional gains.

Therefore, today we introduce two exchange-traded funds (ETFs) that could benefit further from the escalation of the opening of the U.S. economy as consumers decide to resume some of the leisure activities abandoned during lockdowns.

h2 1. Invesco Dynamic Leisure and Entertainment ETF/h2

Current Price: $44.82
52-Week Range: $27.95 - $55.25
Dividend Yield: 0.72%
Expense Ratio: 0.64%

The Invesco Dynamic Leisure and Entertainment ETF (NYSE:PEJ), invests in shares of 30 U.S. leisure and entertainment firms. Fund managers evaluate companies on several criteria, including price momentum, earnings, management action and value.