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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 travel and leisure leaders alongside some more challenged names. High-quality holdings like Expedia, with robust financial health and growth initiatives, and Las Vegas Sands, supported by strong technical trends and earnings, help lift the fund’s overall quality, while more pressured positions such as Starbucks and Cinemark, which face high leverage, weaker momentum, or profitability concerns, weigh on the score. The main risk is the fund’s focus on leisure and entertainment companies, which can be sensitive to economic cycles and consumer spending trends.
Positive Factors
Recent Performance Momentum
The ETF has shown solid gains over the past month and quarter, indicating improving short-term momentum.
Focused Leisure & Entertainment Exposure
The fund targets leisure and entertainment companies, giving investors concentrated access to this specific consumer theme.
Sector Diversification Within Consumer Areas
While heavily tilted to consumer cyclical names, the ETF also includes communication services, industrials, consumer defensive, and technology stocks, which adds some diversification within related sectors.
Negative Factors
High Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which can eat into long-term returns for buy-and-hold investors.
Concentration in Consumer Cyclical Sector
A large majority of assets are in consumer cyclical companies, making the ETF more sensitive to economic slowdowns and changes in consumer spending.
Mixed Performance Among Top Holdings
Several of the largest positions, including major travel and media names, have shown weak year-to-date performance, which can drag on overall fund results.

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

PEJ Summary

PEJ is the Invesco Dynamic Leisure & Entertainment ETF, which follows the Dynamic Leisure & Entertainment Int Index. It focuses on U.S. companies tied to travel, dining, and fun experiences, mainly in hotels, restaurants, and leisure. Well-known holdings include Airbnb and Marriott International, along with cruise lines and travel companies. Someone might invest in PEJ to benefit from growth in consumer spending on travel and entertainment and to get diversified exposure to many leisure-related businesses in one fund. A key risk is that it can rise or fall sharply with the economy, since people cut back on travel and entertainment in weaker times.
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 heavily tilted toward U.S. leisure and travel names, so a handful of big players are steering the ship. Hotel giants Hilton and Marriott have been rising steadily, giving the fund a solid backbone as travel demand stays firm. Airbnb is also pulling its weight, riding ongoing strength in alternative accommodations. On the flip side, Las Vegas Sands has been lagging, acting like a bit of an anchor on performance, while Expedia and TripAdvisor show more mixed momentum. Overall, this is a concentrated bet on the U.S. experience economy rather than a broad global mix.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Expedia5.56%$15.31M$32.25B52.00%
80
Outperform
Viking Holdings5.32%$14.67M$44.92B82.39%
66
Neutral
Sysco5.19%$14.31M$40.56B10.06%
71
Outperform
Airbnb5.17%$14.24M$89.76B7.78%
71
Outperform
Hilton Worldwide Holdings4.87%$13.41M$76.97B25.31%
67
Neutral
Marriott International4.72%$13.00M$98.34B36.00%
62
Neutral
Starbucks4.68%$12.88M$118.84B9.04%
56
Neutral
Las Vegas Sands4.35%$11.98M$31.14B-6.21%
74
Outperform
TripAdvisor3.50%$9.65M$1.66B-19.16%
67
Neutral
US Foods Holding3.21%$8.83M$22.97B30.57%
74
Outperform

PEJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
62.71
Positive
100DMA
61.24
Positive
200DMA
60.48
Positive
Market Momentum
MACD
1.19
Positive
RSI
60.59
Neutral
STOCH
59.87
Neutral
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 65.55, equal to the 50-day MA of 62.71, and equal to the 200-day MA of 60.48, indicating a bullish trend. The MACD of 1.19 indicates Positive momentum. The RSI at 60.59 is Neutral, neither overbought nor oversold. The STOCH value of 59.87 is Neutral, 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
$256.82M0.57%
63
Neutral
$987.67M0.61%
71
Outperform
$980.94M0.30%
65
Neutral
$539.89M0.35%
67
Neutral
$306.51M0.40%
69
Neutral
$265.87M0.60%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PEJ
Invesco Dynamic Leisure & Entertainment ETF
65.49
8.28
14.47%
FXH
First Trust Health Care AlphaDEX Fund
UFOX
Defiance Connective Technologies Etf
XRT
SPDR S&P Retail ETF
RSPD
Invesco S&P 500 Equal Weight Consumer Discretionary 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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