The Covid-19 pandemic has certainly changed the landscape for many businesses, including the media industry. One way to capitalize on a changing media environment is with the Invesco Dynamic Media ETF (PBS).
PBS seeks to track the investment results of the Dynamic Media Intellidex Index. The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index.
At the heart of the index is a conglomerate of U.S. media companies. These companies are principally engaged in the development, production, sale, and distribution of goods or services used in the media industry.
In every sense of the word, PBS has been just exactly as the fund name says: dynamic. The ETF is up 80% within the past year and 20% so far in 2021.
The strength of any ETF is obviously tied to its holdings. Investors can get exposure to stocks like Twitter, Pinterest, Disney, Google, and Spotify, all media powerhouses in their own right.
All five holdings have been providing strong gains over the past year, with Pinterest in pole position at a gain of above 300%. Its largest holding relative to percentage of assets is Twitter, which is up over 130% the past year.
About 40% of the fund’s allocation is to large cap names. However, the rest of the funds still captures mid cap and small cap exposure to add variety.
The Digitization of Media
Technology was already on the rise ahead of the Covid-19 pandemic. During the pandemic, media companies have found innovative ways to reach broader audiences.
As a Beet.TV article noted, the “media marketplace has become much more fragmented as media and technology companies launch digital video services to lure viewership on connected devices like smart TVs and mobile phones. As advertisers shift their media spending to those streaming channels, pricing data have become more crucial for a functioning marketplace.”
“We’re coming out of 2020, where there was actually a tremendous shifting of dollars,” Ben Tatta, president of advertising intelligence company Standard Media Index (SMI), said in an interview with Beet.TV. “A lot of clients are interested in how those shifts are impacting their business and what areas are growing — whether it’s from a category level or whether it relates to media channels.”
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