Should You Invest in the Invesco Leisure and Entertainment ETF (PEJ)?

The Invesco Leisure and Entertainment ETF (PEJ) was launched on 06/23/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Consumer Discretionary - Leisure and Entertainment segment of the equity market.Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Leisure and Entertainment is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $271.91 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Discretionary - Leisure and Entertainment segment of the equity market. PEJ seeks to match the performance of the Dynamic Leisure & Entertainment Intellidex Index before fees and expenses.The Dynamic Leisure & Entertainment Intellidex Index is comprised of stocks of U.S. leisure and entertainment companies. 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.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.58%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.38%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Consumer Discretionary sector--about 48.20% of the portfolio. Telecom and Consumer Staples round out the top three.Looking at individual holdings, Booking Holdings Inc (BKNG) accounts for about 5.70% of total assets, followed by Live Nation Entertainment Inc (LYV) and Royal Caribbean Cruises Ltd (RCL).The top 10 holdings account for about 48.04% of total assets under management.Performance and RiskYear-to-date, the Invesco Leisure and Entertainment ETF has added about 31.48% so far, and is up about 36.77% over the last 12 months (as of 12/05/2024). PEJ has traded between $39.67 and $54.92 in this past 52-week period.The ETF has a beta of 1.36 and standard deviation of 22.35% for the trailing three-year period, making it a high risk choice in the space. With about 31 holdings, it has more concentrated exposure than peers.AlternativesInvesco Leisure and Entertainment ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PEJ is a good option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.Global X Video Games & Esports ETF (HERO) tracks SOLACTIVE VIDEO GAMES & ESPORTS INDEX and the VanEck Video Gaming and eSports ETF (ESPO) tracks MVIS GLOBAL VIDEO GAMING AND ESPORTS IND. Global X Video Games & Esports ETF has $112.06 million in assets, VanEck Video Gaming and eSports ETF has $293.11 million. HERO has an expense ratio of 0.50% and ESPO charges 0.56%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco Leisure and Entertainment ETF (PEJ): ETF Research Reports Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Global X Video Games & Esports ETF (HERO): ETF Research Reports Live Nation Entertainment, Inc. (LYV): Free Stock Analysis Report Booking Holdings Inc. (BKNG): Free Stock Analysis Report VanEck Video Gaming and eSports ETF (ESPO): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks