A new exchange traded fund has hit the field, tackling companies that sponsor and partner with some of the biggest names in sports industry.
SportsETFs is the latest issuer to enter the ETF arena, launching the ProSports Sponsors ETF (BATS: FANZ).
The ProSports Sponsors ETF tries to reflect the performance of the ProSports Sponsors Index, which is comprised of companies which are official sponsors of the major professional football, baseball, hockey and basketball leagues in the United States, along with national sports broadcasters with rights agreements with such leagues, according to a prospectus sheet.
The underlying index components may include both U.S. and foreign companies, along with those located in emerging market countries. Holdings are also equally weighted when added to the index and when the index is rebalanced.
“We believe that our research has demonstrated that investing in companies that partner with sports leagues in the United States represents a compelling investment opportunity because businesses believe they can increase brand awareness, grow revenues and market share through their attachment to sports,” according to SportsETFs. “Over time, we believe that the companies that invest in pro sports partnerships grow faster than the broader economy. Research also shows that these partnerships have an influence on the purchasing decisions of fans who follow their favorite sports.”