New Trade for March 26th, 2021

Stocks were mixed in early trading this morning after turning green late in yesterday’s session.

It’s been a rough week for tech, with the Nasdaq gnarly 2% lower for the week.  The S&P and the Dow are about even for the week.  Where will we close the week?  Wait and see.  

Recovery stocks seem to be taking the spotlight once again, with leisure stocks on the rise in early trading.  Our trade alert for today highlights one interesting reopening play for investors who might have missed out on early opportunities to buy the names that are likely to continue to rise as the reopening rolls on.  

The Invesco Dynamic Leisure & Entertainment ETF (PEJ)

The investment seeks to track the investment results (before fees and expenses) of the Dynamic Leisure & Entertainment IntellidexSM Index. The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying intellidex. The underlying intellidex was composed of common stocks of U.S. leisure and entertainment companies. These companies are engaged principally in the design, production or distribution of goods or services in the leisure and entertainment industries. The fund is non-diversified.

PEJ tries to pick winning stocks rather than deliver a market-cap-weighted basket that reflects the industry. Its stock selection process is a bit opaque beyond the broad descriptions of its screens: fundamental, timeliness, valuation and risk. PEJ holds about 30 stocks, many more than the 10 or so in our narrow benchmark. Some might see value in this diversification, which mitigates single-stock risk, while others might see a lack of focus. Either way, many of these ‘extra’ stocks are restaurant chains, which our benchmark excludes from the leisure & entertainment industry. By firm size, the fund tilts significantly away from large-caps. The resulting portfolio has lagged our benchmark over the past 12 months. PEJ isn’t cheap to hold but can be fairly traded with care.

  • Net Assets                              1.38B
  • Price/Earnings Ratio               117.1
  • Price/Book  Ratio                    4.09
  • YTD daily total return              19.70%
  • Expense Ratio (net)                0.63%
  • Yield                                        0.77%
  • Top Holdings                           ViacomCBS (VIAC), Disney (DIS), Fox Corp. A (FOXA)

Where to invest $1,000 right now...

Before you consider buying The Invesco Dynamic Leisure & Entertainment ETF (PEJ), you'll want to see this.

Investing legend, Keith Kohl just revealed his #1 stock for 2022...

And it's not The Invesco Dynamic Leisure & Entertainment ETF (PEJ).

Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.

Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.

Find that to be extraordinary?

Click here to watch his presentation, and decide for yourself...

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

Click here to find out the name and ticker of Keith's #1 pick...


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