#7 - Invesco Dynamic Leisure & Entertainment ETF (NYSEARCA:PEJ)
If choosing individual travel stocks still feels too risky for you, the last option on my list is the Invesco Dynamic Leisure & Entertainment ETF (NYSEARCA: PEJ). The fund has outperformed the broader U.S. market and also the consumer discretionary sector in 2021. The fund did benefit from the surge in AMC Entertainment (NYSE: AMC). However, the fund divested its position at the end of the quarter and that is leading some analysts to wonder if the stock will fall back to its past performance. In the prior three years, PEJ has had a return of 4.7% which has made it a considerable laggard.
The fund is trading at the upper end of its 52-week range which suggests investors should be cautious about entering a position. Still with 90% of the fund’s holdings focused on common stocks in the hospitality industry, it’s an ideal way for investors to gain exposure to this sector which is likely to be one of the strongest for the remainder of 2021 and beyond.
About Invesco Leisure and Entertainment ETF
PowerShares Dynamic Leisure and Entertainment Portfolio (the Fund) seeks investment results that correspond generally to the price and yield of the Dynamic Leisure and Entertainment Intellidex Index (the Index). 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.
Read More - Current Price
- $53.60
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 4 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $53.60 (0.0% Downside)
As I stated in the introduction, it’s typically not a bad investing strategy to bet on the American consumer. After a long 16 months, millions of Americans are either vaccinated or have natural immunity from having had the virus. I’ll leave the debate about herd immunity to other people. Right now, Americans are ready to travel.
It’s unclear whether the fall or winter will bring more Covid-related concerns. However, for now, the existing vaccines look effective against the variants. And this fall will make it nearly a full year since the vaccines were available. Perhaps that will spawn a resurgence with some individuals who are on the fence.
But in the here and now, this reopening will create many opportunities for investors. And despite many of these stocks having an impressive run, part of that is because they were deeply discounted at the onset of the pandemic.
Obviously, this isn’t an exhaustive list of travel stocks to buy for the rest of 2021. But they give you a representation of strong performers across many of the most popular sectors.
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