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PEJ - ETF AI Analysis

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PEJ

Invesco Dynamic Leisure & Entertainment ETF (PEJ)

Rating:63Neutral
Price Target:
PEJ, the Invesco Dynamic Leisure & Entertainment ETF, has a solid but not top-tier rating, reflecting a mix of strong leaders and some higher-risk names in the leisure and travel space. Strong contributors like Expedia, with resilient earnings and growth initiatives, and Las Vegas Sands, with positive earnings and technical trends, help support the fund’s quality. However, weaker holdings such as Lindblad Expeditions, which faces high debt and weak cash flow, and leveraged, higher-valuation names like Starbucks add risk, and the fund’s focus on leisure and entertainment means it is sensitive to consumer spending and travel cycles.
Positive Factors
Strong Recent Performance
The ETF has delivered solid gains so far this year and over the past three months, showing positive momentum.
Leading Travel and Leisure Brands
Several top holdings like Viking Holdings, Starbucks, Hilton, Marriott, and Lindblad have shown strong share performance, helping support the fund’s returns.
Focused Yet Varied Consumer Exposure
While centered on leisure and entertainment, the fund still spreads investments across consumer cyclical, communication services, and consumer defensive companies, offering some diversification within its theme.
Negative Factors
High Sector Concentration
A large majority of the portfolio is in consumer cyclical stocks, making the fund sensitive to economic slowdowns and changes in consumer spending.
Heavy U.S. Market Focus
With almost all assets in U.S. companies, investors get limited geographic diversification and remain highly exposed to the U.S. economy.
Above-Average Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which means more of the returns are used to cover fees instead of going to investors.

PEJ vs. SPDR S&P 500 ETF (SPY)

PEJ Summary

The Invesco Dynamic Leisure & Entertainment ETF (PEJ) tracks the Dynamic Leisure & Entertainment Int Index and focuses on companies that make money from people’s free-time spending, mainly in hotels, restaurants, travel, and entertainment. Well-known holdings include Starbucks and Airbnb, along with major hotel brands like Hilton and Marriott. Someone might invest in PEJ to benefit from long-term growth in travel and leisure and to add diversification tied to consumer spending trends. A key risk is that these businesses are very sensitive to the economy, so the ETF’s price can rise or fall sharply when consumer spending changes.
How much will it cost me?The Invesco Dynamic Leisure & Entertainment ETF (PEJ) has an expense ratio of 0.57%, meaning you’ll pay $5.70 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on a specific sector rather than tracking a broad index. Active management typically involves more research and trading, which increases costs.
What would affect this ETF?The Invesco Dynamic Leisure & Entertainment ETF (PEJ) could benefit from increased consumer spending on leisure and entertainment activities, especially as economic conditions improve and travel and dining trends grow. However, it may face challenges from rising interest rates, which can reduce discretionary spending, or economic slowdowns that impact consumer confidence. Additionally, regulatory changes or disruptions in the travel and entertainment industries could negatively affect some of its top holdings like Carnival or Live Nation Entertainment.

PEJ Top 10 Holdings

PEJ is essentially a bet on Americans splurging on trips and nights out, with travel and hospitality names steering the ship. Viking and Lindblad have been rising sharply, giving the fund a lift despite their financial baggage, while steady performers like Sysco help keep things on an even keel. Airbnb and Expedia have seen more mixed, recently lagging action, and Las Vegas Sands has been dragging the fund with weaker momentum. Overall, it’s a U.S.-centric, consumer cyclical play tightly focused on leisure, lodging, and dining.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Expedia6.03%$15.52M$35.16B65.53%
80
Outperform
Viking Holdings5.46%$14.06M$46.60B81.29%
66
Neutral
Airbnb5.26%$13.54M$91.66B18.36%
71
Outperform
Sysco5.16%$13.28M$40.51B6.71%
71
Outperform
Starbucks4.79%$12.33M$120.67B21.17%
56
Neutral
Marriott International4.61%$11.87M$99.01B46.01%
62
Neutral
Las Vegas Sands4.60%$11.84M$32.30B-6.45%
74
Outperform
Hilton Worldwide Holdings4.56%$11.75M$72.48B22.87%
67
Neutral
TripAdvisor3.54%$9.11M$1.65B-12.62%
67
Neutral
Lindblad Expeditions Holdings3.49%$8.98M$1.95B152.17%
53
Neutral

PEJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
64.89
Positive
100DMA
62.25
Positive
200DMA
61.03
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PEJ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 66.10, equal to the 50-day MA of 64.89, and equal to the 200-day MA of 61.03, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PEJ.

PEJ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$257.13M0.57%
63
Neutral
$924.77M0.60%
72
Outperform
$883.40M0.69%
68
Neutral
$330.61M0.40%
69
Neutral
$329.27M0.35%
66
Neutral
$276.08M0.60%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PEJ
Invesco Dynamic Leisure & Entertainment ETF
66.87
9.69
16.95%
FTXH
First Trust Nasdaq Pharmaceuticals ETF
AIPO
Defiance AI & Power Infrastructure ETF
RSPD
Invesco S&P 500 Equal Weight Consumer Discretionary ETF
XRT
SPDR S&P Retail ETF
FXD
First Trust Consumer Discretionary AlphaDEX Fund
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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