Tourism is rising on a global scale, making way for leisure and entertainment spending, which should help boost the Invesco Dynamic Leisure and Entertainment ETF (PEJ).
China is already seeing its tourism activity rise as the continued move toward vaccination is helping to ease fears of rising Covid-19 cases.
“China saw more than 89 million domestic tourist trips during the three-day Dragon Boat Festival holiday, up by 94.1 percent from last year, the Ministry of Culture and Tourism said Monday,” a CGTN article explained. “Tourism revenue reached 29.43 billion yuan ($4.6 billion), up by 139.7 percent from last year, according to the ministry.”
U.S. Opening Up for International Travel
Meanwhile, in the U.S., plans are to continue working with other countries to resume international travel. This should provide further tailwinds for leisure and entertainment spending.
“The United States is forming expert working groups that will make plans to resume international travel with several key destinations, including Mexico, Canada, the United Kingdom, and the European Union,” said a Travel Off Path article. “While some countries have been allowing American travelers throughout the pandemic, the US has not reciprocated the same for many. This post will look at the current situation between these countries and what the US plans to do to resume international travel.”
PEJ is based on the Dynamic Leisure & Entertainment Intellidex℠ Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index.
The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is comprised of common stocks of 30 U.S. leisure and entertainment companies.
Advertising Spending Rises
In order to re-attract customers following the pandemic, many companies are spending more on advertising. The entertainment industry is just one of those sectors.
Per a New York Post article, media investment and intelligence company Magna “said advertising growth is fueled by the overall economic recovery, which saw global gross domestic product rise 6.4 percent in the first quarter of 2021. Industries like automotive, travel, entertainment and restaurants have experienced a resurgence thanks to international sports events like the upcoming Olympics and European Football Championship.”
“As economic recovery is stronger and faster than anticipated in several of the world’s largest ad markets, US, UK and China, in particular, and consumption accelerates, brands need to reconnect with consumers,” said Vincent Létang, MAGNA’s executive vice president of global market research.
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