Meet the Newest Sports ETF
July 12, 2017 by Chris LangeSports fans rejoice. There is now an exchange traded fund (ETF) that caters to this group. SportsETFs has just launched its first ETF, the ProSports Sponsors ETF (NYSEMKT: FANZ). The fund tracks the ProSports Sponsors Index, which follows the performance of the official corporate sponsors of major professional American football, basketball, baseball and hockey leagues.
The equally weighted index is looking to take advantage of the growth potential of companies that partner with professional sports leagues and offers broad market exposure with holdings in several sectors, including consumer discretionary, information technology, financials, energy and health care.
The index rebalances at least four times a year. Sponsors are rebalanced on the last trading day in March, August and September, and broadcasters are rebalanced on the last trading day in December.
One compelling argument for this ETF is that the compound annual growth rate. In North American sports, the media rights alone is projected to increase by 5.5% to $21.3 billion through 2020, and sports sponsorships by 3.9% to $18.7 billion, according to PwC’s Sports Outlook.
Currently, there are 66 names in the fund, with the expectations that more will be added to the ProSports Sponsors Index, reflecting what is projected to be an upward trend in league sponsorships.
Nick Fullerton, president and co-founder of SportsETFs and president of Fullerton Advisors, commented:
FANZ is the first ETF that allows investors and sports fans to participate in the financial relationships between sports leagues and their corporate partners. While other products in the market offer strategies that invest in sporting goods or leisure & entertainment, the ProSports Sponsors ETF holds companies that invest in high-profile marketing partnerships that target a specific audience. FANZ can be a core equity position in an investor’s portfolio while also being an exciting way to financially participate in something fans understand and love.
Shares of the ETF were last seen trading up 0.7% at $20.18, with a trading range of $20.11 to $20.20 on the day thus far.
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