This ETF’s assets have grown 3,000% in a year as investors embrace the reopening trade

Money is pouring into one exchange-traded fund tied to the reopening trade.

Invesco’s Dynamic Leisure and Entertainment ETF (PEJ) has seen its assets climb from round $50 million a year in the past to $700 million at the begin of 2020 and greater than $1.5 billion as of this Thursday, stated John Hoffman, Invesco’s head of ETFs and listed methods for the Americas.

That’s almost a 3,000% enhance in a year, important for a fund that has stayed comparatively below the radar since its 2005 launch.

PEJ shares have climbed nearly 71% in the previous 12 months and simply over 190% since the fund’s inception. It was up almost half of 1% by noon Thursday.

“It sat at very low capital for a long period of time,” Hoffman instructed CNBC’s “ETF Edge” on Monday. “It was a way the clients looked at to position for this reopening trade, if you will.”

PEJ’s high 5 holdings are Sysco, Booking Holdings, Chipotle, Disney and Airbnb.

“These names were beaten up pretty good during the pandemic,” Hoffman stated. “But … you’ve got a basket here of 32 companies focused in the leisure and entertainment [space], names that have been benefiting from the reopening trade, and we continue to see clients add capital to the portfolio — again, a precise way to get exposure to these names that have been beaten up so hard.”

The anticipated pickup in leisure and leisure may gasoline the market’s subsequent leg greater, Douglas Yones, head of exchange-traded merchandise at the New York Stock Exchange, stated in the identical “ETF Edge” interview.

“I think there is a bit of a natural excitement about bringing people back together and then going out and actually being able to do these things, and so, maybe that parlays into the next level of growth,” Yones stated.

Disclosure: Invesco is the sponsor of CNBC’s “ETF Edge.”


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