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PEJ Invesco Leisure and Entertainment ETF

Category: Consumer Discretionary Equities

Inception: 2005-06-23 Issuer: Invesco
Net Assets
$314.6M
Expense Ratio
0.57 %
# of Holdings
31
Average Daily Volume
124.3K

Fund Overview

The Invesco Dynamic Leisure and Entertainment ETF (PEJ) is an exchange-traded fund that seeks to track the Dynamic Leisure & Entertainment Intellidex Index. This index is designed to provide capital appreciation by thoroughly evaluating companies based on various investment merit criteria, including price momentum, earnings momentum, quality, management action, and value. The fund primarily invests in U.S. companies within the leisure and entertainment sectors, such as hotels, restaurants, media, and gaming. PEJ offers investors targeted exposure to consumer discretionary spending trends, making it a strategic choice for those looking to capitalize on shifts in leisure and entertainment consumption.
Asset Class
Equity
Industry
Leisure & Entertainment
Annual Dividend Rate
Smart Beta
Yes
Leveraged / Inverse
N/A / No
Dividend Quality - Yield
 - 0.18 %
Currency Hedged
No
Portfolio Turnover
163 %
Dividend Date

Why Invest in the PEJ ETF?

Potential Benefits

  • Provides targeted exposure to the leisure and entertainment sector, which can benefit from economic growth and increased consumer spending.
  • Utilizes a dynamic, rules-based methodology to select stocks, potentially offering better risk-adjusted returns than traditional market-cap-weighted funds.
  • Diversifies across multiple sub-industries within leisure and entertainment, reducing single-stock risk.
  • Offers liquidity and transparency as an ETF, allowing investors to trade throughout the day at market prices.
  • May serve as a hedge against economic downturns, as leisure and entertainment companies often adapt well to changing consumer preferences.

Potential Risks

  • Sensitive to economic cycles, as consumer discretionary spending tends to decline during recessions.
  • Concentration risk in certain sub-sectors, such as restaurants or gaming, which may underperform due to regulatory changes or competitive pressures.
  • Higher expense ratio compared to broader market ETFs, which could erode returns over time.
  • Potential for tracking error, as the fund's dynamic selection methodology may not always align perfectly with the broader sector performance.
  • Exposure to small- and mid-cap stocks, which can be more volatile than large-cap counterparts.

Performance

1 Week 1 Month 1 Year 3 Years 5 Years YTD 2025 2024 Since Inception
+0.41% -1.21% +5.83% +68.07% +24.20% +2.94% +17.31% +27.17% +393.35%

Performance


Monthly Returns (%)

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2026 -1.8% +2.4% -5.8% +5.3% +2.9% +6.1% +0.5% -2.2% -5.1% +1.5% - -
2025 +7.0% -2.2% -10.9% -1.3% +11.0% +6.7% +1.3% +3.3% +1.9% -3.4% +1.1% +3.7%
2024 -0.3% +6.0% +4.7% -4.2% -0.4% +3.1% +0.5% +1.3% +3.3% +3.4% +10.3% -4.0%
2023 +13.6% -2.3% +1.1% +1.7% -5.4% +6.9% +3.4% -5.4% -6.3% -6.8% +8.7% +8.0%
2022 -4.2% +3.0% +1.1% -11.2% -3.3% -13.2% +9.2% -1.6% -11.1% +11.3% +2.7% -8.0%
2021 +3.9% +15.6% -4.3% +0.1% +2.6% +10.7% -5.8% +1.1% +1.2% +0.3% -9.4% +7.3%
2020 -5.4% -14.7% -32.9% +12.7% +9.5% -3.0% +3.1% +11.4% -4.0% -6.6% +23.3% +9.0%
2019 +6.5% +1.1% +0.2% +4.3% -7.6% +5.0% +2.6% -2.9% -1.5% -0.7% +3.9% +2.9%
2018 +4.9% -3.1% -0.7% +1.0% +3.2% +0.4% +1.0% +0.1% +0.4% -10.3% +3.4% -8.9%
2017 +1.1% +1.2% +0.7% +1.9% -0.5% -0.1% -1.8% -1.0% +2.5% +1.1% +4.1% +1.6%
< -5% -5% to -2% -2% to 0% 0% 0% to +2% +2% to +5% > +5%

Top Holdings (by weight)

Symbol Company Name Weight
SYY SYSCO CORP 5.8 %
DASH DOORDASH INC ORDINARY SHARES CLASS A 5.5 %
HLT HILTON WORLDWIDE HOLDINGS INC 5.0 %
RCL ROYAL CARIBBEAN GROUP 4.8 %
WBD WARNER BROS. DISCOVERY INC ORDINARY SHARES CLASS A 4.6 %
CCL CARNIVAL CORP 4.5 %
DAL DELTA AIR LINES INC 3.7 %
UAL UNITED AIRLINES HOLDINGS INC 3.7 %
SRAD SPORTRADAR GROUP AG CLASS A 3.5 %
DRI DARDEN RESTAURANTS INC 3.3 %
Top 10 holdings shown, out of 31 total holdings.

Related ETFs: PEJ vs Peers

ETF Full Name Expense Ratio Net Assets Holdings Asset Class
FDIS Fidelity MSCI Consumer Discretionary Index ETF 0.08 % $1.7B 260 Equity
FXD First Trust Consumer Discretionary AlphaDEX Fund 0.61 % $501M 123 Equity
IYC iShares U.S. Consumer Discretionary ETF 0.39 % $1.3B 177 Equity
PBJ Invesco Food & Beverage ETF 0.62 % $92.5M 31 Equity
PEJ Invesco Leisure and Entertainment ETF 0.57 % $314.6M 31 Equity
PEZ Invesco Dorsey Wright Consumer Cyclicals Momentum ETF 0.60 % $54.1M 37 Equity
RSPG Invesco S&P 500 Equal Weight Energy ETF 0.40 % $508M 23 Equity
VCR Vanguard Consumer Discretionary ETF 0.09 % $6.2B 294 Equity
XLY Consumer Discretionary Select Sector SPDR Fund 0.08 % $19.9B 53 Equity
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.

Investment Strategy

PEJ tracks the Dynamic Leisure & Entertainment Intellidex Index, which employs a quantitative, rules-based methodology to select stocks from the U.S. leisure and entertainment sector. The index evaluates companies based on factors such as price momentum, earnings momentum, quality, management action, and value. The fund is rebalanced quarterly to ensure alignment with its investment objectives. PEJ primarily holds common stocks of U.S. companies, providing direct exposure to the sector without the use of derivatives.

Frequently Asked Questions

What types of companies does PEJ invest in?

PEJ invests in U.S. companies within the leisure and entertainment sector, including restaurants, hotels, media, and gaming firms.

How often is PEJ rebalanced?

PEJ is rebalanced quarterly to maintain alignment with its underlying index methodology.

Does PEJ use derivatives or leverage?

No, PEJ primarily invests in common stocks and does not use derivatives or leverage.

How does PEJ differ from a standard consumer discretionary ETF?

PEJ focuses specifically on leisure and entertainment, whereas broader consumer discretionary ETFs include a wider range of industries like retail and automotive.

Industry Overview

The Invesco Dynamic Leisure and Entertainment ETF (PEJ) focuses on the leisure and entertainment industry, a segment of the consumer discretionary sector. This industry includes companies involved in restaurants, hotels, media, gaming, and other recreational activities. Investing in PEJ allows exposure to consumer spending trends, which often correlate with economic health. The leisure and entertainment sector can be cyclical but also benefits from innovation and evolving consumer preferences, such as streaming services and experiential travel. PEJ provides a way to invest in these trends through a diversified, rules-based approach.

Alternative Comparison

Compared to broader consumer discretionary ETFs like XLY or IYC, PEJ offers a more concentrated focus on leisure and entertainment. While XLY provides diversified exposure across the entire consumer discretionary sector, PEJ narrows its scope to capitalize on specific trends within leisure and entertainment. Another peer, PEZ (Invesco DWA Consumer Cyclicals Momentum ETF), also employs a momentum-based strategy but includes a wider range of cyclical stocks. PEJ’s dynamic indexing approach may offer better risk-adjusted returns than traditional cap-weighted funds, though at a slightly higher expense ratio.

Issuer Overview

Invesco is a global asset management firm with a strong reputation for offering a wide range of investment products, including ETFs, mutual funds, and alternative investments. Known for its quantitative and factor-based strategies, Invesco provides investors with innovative solutions tailored to various market segments. The firm's Dynamic ETF series, including PEJ, utilizes proprietary indexing methodologies to enhance traditional market-cap-weighted approaches.

Conclusion

The Invesco Dynamic Leisure and Entertainment ETF (PEJ) is a strategic choice for investors seeking targeted exposure to the leisure and entertainment sector. Its dynamic, rules-based methodology aims to enhance returns by focusing on companies with strong investment merit. While the fund carries sector-specific risks, its diversified approach and active rebalancing may appeal to those looking to capitalize on consumer discretionary trends. Investors should weigh the potential benefits against the risks, including economic sensitivity and expense ratio considerations.

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