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

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Money flows into an exchange-traded fund linked to the reopening of trading.

Invesco’s Dynamic Leisure and Entertainment ETF (PEJ) has seen its assets rise from about $50 million a year ago to $700 million at the start of 2020 and more than $1.5 billion as of this Thursday, said John Hoffman, Invesco’s head of ETFs. and indexed strategies for America.

That’s an increase of nearly 3,000% in one year, significant for a fund that has remained relatively under the radar since its launch in 2005.

PEJ shares are up nearly 71% in the past 12 months and just over 190% since the fund’s inception. It was up nearly half from 1% on Thursday afternoon.

“It was on very low capital for a long time,” Hoffman told CNBC’s “ETF Edge” on Monday. “It was a way the customers looked at their position for this reopening trade, if you will.”

PEJ’s top five companies are Sysco, Booking Holdings, Chipotle, Disney and Airbnb.

“These names got pretty beat up during the pandemic,” Hoffman said. “But… you have here a basket of 32 companies focused on leisure and entertainment [space], names that have benefited from the reopening, and we continue to see clients add capital to the portfolio – again, a precise way to gain exposure to these names that have been beaten up so hard.”

The expected uptick in leisure and entertainment could spur the market’s next move, Douglas Yones, head of exchange-traded products at the New York Stock Exchange, said in the same “ETF Edge” interview.

“I think there’s a bit of a natural excitement of getting people back together and then going out and being able to actually do these things, and so, maybe that leads to the next level of growth,” Yones said.

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


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