A leisure and entertainment exchange traded fund is hitting its stride as American consumers forgo grocery shopping and spend more at restaurants.
Year-to-date, the PowerShares Dynamic Leisure and Entertainment Portfolio (NYSEArca: PEJ) has increased 5.5%.
PEJ targets U.S. leisure and entertainment companies, such as resorts, hotels, cruises and restaurants, and also weights components based on price momentum, earnings momentum, quality, management action, and value. The portfolio includes stores like Starbucks (NasdaqGS: SBUX), Denny’s (NasdaqGS: DENN), Sonic (NasdaqGS: SONC), Papa John’s (NasdaqGS: PZZ) and Jack in the Box (NasdaqGS: JACK). [Leisure, Entertainment ETFs: Consumers Spending on ‘Experiences’]
The leisure and entertainment-related fund is gaining momentum as American consumers dine out more. According to the Commerce Department, sales at restaurants and bars overtook spending at grocery stores in March for the first time ever, reports Michelle Jamrisko for Bloomberg.
Morgan Stanley argues that the shift in eating habits may be attributed to the younger generation who is more willing to spend on “food away from home.”
The food services industry is also catching on and is focusing on how to cater to the rising group of young consumers who are set to overtake the baby-boomer generation.