Investors Target Invesco ETF for World Cup Travel, Media

Investors are turning to the Invesco Dynamic Leisure & Entertainment ETF (PEJ) as the World Cup begins in North America tomorrow. The fund, which follows the Dynamic Leisure & Entertainment Intellidex℠ Index, had about $243.88 million in assets and will mark its 21st year later this month.

PEJ holds stakes in hotel chains that could see higher demand in host cities. Its top lodging exposures include Hilton Worldwide, Marriott International and Hyatt. Deutsche Bank wrote that the luxury segment should see the largest benefit and that Hyatt, Hilton and Marriott are positioned to outperform other chain scales during the tournament period.

The ETF also includes online travel booking platforms. Positions in Expedia and TripAdvisor could track increased reservation activity from fans traveling to matches and booking related travel arrangements.

Media and broadcast-related holdings are part of PEJ’s mix. Deutsche Bank wrote that the World Cup could lift results for Fox Corp., which may lead to upside relative to consensus estimates for the June and September quarters.

Food-service and distribution exposure appears in the fund as well. Industry firm Technomic estimates the World Cup will add about $1.9 billion in incremental sales to the U.S. foodservice market. Data from the New York City Hospitality Alliance showed that in 2022 roughly 75% of New York City restaurants and bars reported higher revenue during U.S. TV broadcasts of the FIFA men’s World Cup, and about 55% said the spike was especially steep for U.S. team games. PEJ’s seventh-largest holding, food distributor Sysco, is identified as a company that could see increased demand.

Market participants tracking event-driven effects on companies will look at hotel booking trends, travel-booking volumes, broadcaster ad revenue and restaurant sales as the tournament unfolds. PEJ provides exposure across lodging, travel platforms, media and food-service equities within a single fund vehicle.