Is Invesco Leisure and Entertainment ETF (PEJ) a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2024
0mins
Source: NASDAQ.COM
- Invesco Leisure and Entertainment ETF (PEJ): Launched in 2005, this smart beta exchange-traded fund offers broad exposure to the Consumer Discretionary ETFs category.
- Smart Beta ETFs: These funds track non-cap weighted strategies based on specific fundamental characteristics for stock selection aiming at better risk-return performance.
- Fund Sponsor & Index: Managed by Invesco, PEJ seeks to match the Dynamic Leisure & Entertainment Intellidex Index's performance, focusing on U.S. leisure and entertainment companies.
- Cost & Other Expenses: With an expense ratio of 0.58%, PEJ has a 12-month trailing dividend yield of 0.50% and operating expenses that are competitive within its space.
- Sector Exposure and Top Holdings: The fund has a significant allocation to the Consumer Discretionary sector, with top holdings like Royal Caribbean Cruises Ltd, Doordash Inc, and Live Nation Entertainment Inc.
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Analyst Views on RCL
Wall Street analysts forecast RCL stock price to rise
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 287.210
Low
275.00
Averages
327.80
High
400.00
Current: 287.210
Low
275.00
Averages
327.80
High
400.00
About RCL
Royal Caribbean Cruises Ltd. is a cruise company, which owns and operates three global cruise brands: Royal Caribbean, Celebrity Cruises and Silversea Cruises. It also has an interest in TUI Cruises GmbH, which operates the German brands TUI Cruises and Hapag-Lloyd Cruises. Its ships offer a selection of worldwide itineraries that call on approximately 1,000 destinations on all seven continents. Royal Caribbean offers cruises and land destinations that generally feature a casual ambiance, as well as a variety of activities and entertainment venues. Celebrity Cruises offers a range of itineraries to destinations, including Alaska, Asia, Australia, Bermuda, Canada, the Caribbean, Europe, the Galapagos Islands, Hawaii, New Zealand, the Panama Canal and South America, with cruise lengths ranging from three to 14 nights. It also offers a range of private land destinations through Perfect Day at CocoCay and Royal Beach Club collection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Extensive Itineraries: The 2026 itineraries for the revitalized Celebrity Solstice span Asia, Australia, and Alaska, catering to diverse market demands and enhancing the cruise's competitive position in the industry.
- Major Voyage Announcement: The ship will embark on a landmark 110-night Grand Voyage starting September 13, 2026, further boosting brand appeal and customer loyalty in the cruise market.
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- Increased External Threats: President Trump has labeled the Cuban government as an 'unusual and extraordinary threat' and pledged tariffs on any country supplying oil to Cuba, further isolating the nation on the international stage and increasing pressure.
- Humanitarian Crisis Warning: The United Nations has warned of a potential humanitarian 'collapse' in Cuba due to dwindling oil supplies, prompting the government to implement measures to protect essential services and ration fuel for key sectors, highlighting the severity of the economic situation.
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- Surge in Travel Insurance Demand: Following the outbreak of conflict, inquiries for 'cancel for any reason' travel insurance policies surged 18-fold, indicating heightened consumer concern for travel safety and reflecting market sensitivity to uncertainty.
- Hotel Industry Impact: The Fairmont The Palm hotel in Dubai suffered damage due to the conflict, although no guests were harmed, such incidents could tarnish the hotel's reputation and affect future booking rates, especially with the upcoming World Cup.
- Airlines Adjust Routes: For instance, Australia's Qantas has been forced to alter its flight paths to include refueling stops, which, while allowing for an increase in passenger numbers, also raises operational costs, potentially leading to higher ticket prices and further impacting consumer travel choices.
See More
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See More
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- Market Recovery: Following Trump's statement, the S&P 500 trimmed its midday loss from 1.5% to 0.6%, indicating a positive investor reaction to the policy support, which may help restore market confidence.
- Sector Impact: Royal Caribbean Group and other cruise operators saw significant rebounds after Trump's announcement, suggesting that fears of the Iran conflict impacting consumer travel spending may be easing, potentially boosting travel-related expenditures.
- Future Outlook: Trump's mention of more actions to come was interpreted by the market as ongoing support for energy markets, with investors keenly watching whether normal traffic through the Strait of Hormuz can resume and if the Navy escort threat can expedite a diplomatic resolution.
See More
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- Market Panic Intensifies: The CBOE Volatility Index surged by 6% to 22.74, reflecting increased investor fear regarding short-term market volatility, with all 11 S&P 500 sectors trading in the red, showcasing widespread market pressure.
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