This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dion's Weekly ETF Blog Wrap

Lap Up Leisure

Published 6/21/2011 2:54 p.m. EDT

I've been bullish on the PowerShares Leisure and Entertainment ETF (PEJ) for some time , as a weak dollar and recovering global economy is helping to draw both global and U.S. investors to spend more on leisure.

PEJ's holdings include firms such as Disney (DIS), Wynn Resorts (WYNN), Panera Bread (PNRA) and Yum! Brands (YUM).

In the year-long period ending June 20, the fund gained nearly 20%.

While leisure and entertainment stocks have taken a hit along with the broader market during the last four weeks, signs still exist that global consumers are alive and well.

A recent MarketWatch article highlighted recent analysts' comments regarding the Australian gaming industry.

Australians are the world's biggest gamblers, according to the article, which notes, "A report by global gaming-industry consultants H2 Gambling Capital released last month found Australians had the highest annual gambling losses in the world, at nearly 1,300 Australian dollars ($1,377) per resident". Taking note of this pocket of gambling, analysts are becoming increasingly positive about some of Australia's biggest gaming firms.

While Australia is just one locale where the thriving business of gambling seems to underscore a broader recovery, I continue to be bullish on increased consumer spending worldwide. One overlooked fund that offers access to global gaming is the Market Vectors Gaming ETF (BJK), which has outpaced PEJ so far in 2011. PEJ offers exposure to some gaming firms, but if you're a risk-tolerant investor looking to get bullish on gambling, BJK is a solid fund to consider if you're looking to make longer-term trades.

At the time of publication, Dion Money Management held no positions in any securities mentioned.



-- Written by Don Dion in Williamstown, Mass.

RELATED ARTICLES:


3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
PEJ $37.75 -1.33%
XLI $56.29 -0.05%
BJK $38.56 -0.33%
IYT $157.64 -0.86%
FDX $169.05 -0.53%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs