The Invesco Leisure and Entertainment ETF (PEJ) was launched on 06/23/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Consumer Discretionary - Leisure and Entertainment segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Leisure and Entertainment is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $323.55 million, making it one of the larger ETFs attempting to match the performance of the Consumer Discretionary - Leisure and Entertainment segment of the equity market. PEJ seeks to match the performance of the Dynamic Leisure & Entertainment Intellidex Index before fees and expenses.
The Dynamic Leisure & Entertainment Intellidex Index is comprised of stocks of U.S. leisure and entertainment companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.11%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 62.30% of the portfolio. Telecom and Industrials round out the top three.
Looking at individual holdings, Doordash Inc (DASH) accounts for about 5.88% of total assets, followed by Royal Caribbean Cruises Ltd (RCL) and Sysco Corp (SYY).
The top 10 holdings account for about 45.33% of total assets under management.
Performance and Risk
The ETF has gained about 4.45% and it's up approximately 22.78% so far this year and in the past one year (as of 06/09/2025), respectively. PEJ has traded between $42.41 and $57.72 during this last 52-week period.
The ETF has a beta of 1.22 and standard deviation of 22.61% for the trailing three-year period, making it a high risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Leisure and Entertainment ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PEJ is a good option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Global X Video Games & Esports ETF (HERO) tracks SOLACTIVE VIDEO GAMES & ESPORTS INDEX and the VanEck Video Gaming and eSports ETF (ESPO) tracks MVIS GLOBAL VIDEO GAMING AND ESPORTS IND. Global X Video Games & Esports ETF has $150.90 million in assets, VanEck Video Gaming and eSports ETF has $362.54 million. HERO has an expense ratio of 0.50% and ESPO charges 0.56%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco Leisure and Entertainment ETF (PEJ): ETF Research Reports Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Sysco Corporation (SYY): Free Stock Analysis Report Global X Video Games & Esports ETF (HERO): ETF Research Reports VanEck Video Gaming and eSports ETF (ESPO): ETF Research Reports DoorDash, Inc. (DASH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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