Travel and leisure is more than just a magazine to read in-flight. It’s also a way to invest. The Enjoy Yourself ETF on Stash contains of the biggest names in travel and entertainment.
Enjoy Yourself: Take the Travel Tour
Vegas, baby, Vegas. Not long after those words are uttered, you find yourself and your squad on an American Airlines flight out to Sin City. You only have one goal: escape from the dreadful monotony of #cubiclelife. By the time the plane lands, you’re starving, so you make your way to the nearest source of food — Wendy’s. Perhaps not nutritionally ideal, but hey, it’s vacation time and you need to fuel up for the long night ahead.
By the time you arrive at your hotel the sun has given way to the brilliantly lit Vegas night, so you unpack, pre-game, and head out on your soon to be “Hangover”-esque adventure. As if on cue, the breath-taking dance of the Bellagio Fountains starts up and encapsulates the wonder of the desert metropolis.
Before the night is over, you’ll visit The Venetian, MGM Grand, The Palazzo, Luxor, and Mandalay Bay, play blackjack, roulette, and craps, and have collected more nightclub wristbands than you can count. When it is all said and done, the sun is peaking over the horizon and you’re back in your room, munching away on some Domino’s delivery. As you slowly pass out to the background noise of a “Game of Thrones” rerun on HBO, you smile. What an adventure!
Treat (Enjoy) Yo’ Self
Regardless of how solid your work ethic, the monotony of routine can slowly seep into your life and make things stale. In order to avoid burnout, it’s important to take time to unplug from daily life as a way to rejuvenate your mind and body.
This is where Enjoy Yourself comes in. Its scope encompasses all the usual suspects of travel and entertainment. By investing, you will have exposure to the casinos and luxury hotels mentioned above, as well as ski resorts, river cruises, television stations, movie theaters, restaurants, and even airlines.
There are only 30 companies in the ETF, but don’t let that number fool you, these are some of the biggest names in travel and entertainment. To start off, let’s recap the companies we mentioned at the beginning of this article by order of appearance:
– American Airlines Group Inc. (AAL)
– The Wendy’s Co. (WEN)
– MGM Resorts International (MGM) — Bellagio, MGM Grand, Luxor, Mandalay Bay
– Las Vegas Sands (LVS) — The Venetian and The Palazzo
– Domino’s Pizza Inc. (DPZ)
– Time Warner Inc. (TWX) — HBO is a subsidiary
Recommended reading: Summer Blockbuster: Lights, Camera, Invest
In addition, you will also have exposure to companies like AMC Entertainment (AMC), known for its movie theaters, Intrawest Resorts Holdings, Inc. (SNOW), known for its ski and destination resorts, and The Cheesecake Factory (CAKE), known for, well, its cheesecake!
Got it! Anything else I should know before investing?
If you want to do your own research on Enjoy Yourself, then check out the ETF’s website — PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ). The ETF is run by Invesco, which manages over $800 billion in assets, and is the fifth largest ETF provider in the world.
Although Enjoy Yourself is diversified across large, medium, and small cap companies, many of the underlying businesses are dependent on discretionary (extra) income from consumers for their goods and services.
This means that Enjoy Yourself can be a great addition to a diverse portfolio, but it shouldn’t be your only investment.
And if you enjoy Enjoy Yourself (pun intended), here are a few other investments you might want to check out:
Young Money: 80 million strong. Companies, meet the Millennial generation.
Delicious Dividends: When these companies generate profits, they share more with investors than most – in the form of dividends.
Equality Works: Companies that provide LGBT employees with equal rights and respect.
The PowerShares Dynamic Leisure and Entertainment Portfolio is based on the Dynamic Leisure & Entertainment Intellidex Index (a trademark of NYSE Euronext or its affiliates). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Intellidex. The Intellidex thoroughly evaluates companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action, and value. The Underlying Intellidex is comprised of common stocks of 30 U.S. leisure and entertainment companies. The Fund and the Index are rebalanced and reconstituted quarterly in February, May, August and November. There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. The Fund is non-diversified and may experience greater volatility than a more diversified investment. Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale. The Fund may engage in frequent trading of securities in connection with the rebalancing or adjusting its Underlying Index. Investments focused in a particular industry or sector, such as leisure and entertainment, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments. Fund information reported as of February 14, 2017.