This article was originally published on ETFTrends.com.
Labor Day, the first Monday of September that pays homage to the creation of the labor movement and tips a hat to all American workers, will see a flurry of activity from traveling, rising gas prices, barbecues, parents scrambling to get last-minute back-to-school shopping complete and leisure.
As a result, five ETFs that focus on these areas could be poised to gain as the U.S. capital markets take a breather from the extended bull market run.
1. Invesco Dynamic Leisure and Entmnt ETF (PEJ)
Rest, relaxation and leisure will be on the minds of Americans and PEJ could be a beneficiary. PEJ seeks to track the investment results of the Dynamic Leisure & Entertainment IntellidexSM Index, which includes common stocks of leisure companies and entertainment companies that comprise the index.
The index is comprised of common stocks of 30 leisure and entertainment companies within the U.S. The companies are engaged in the design, production or distribution of goods or services in the leisure and entertainment industries.
2. Vanguard Real Estate ETF (VNQ)
Hotels will see a rise in activity, which could benefit real estate ETFs like VNQ that incorporate commercial property focused on lodging. VNQ seeks to provide high income and moderate long-term capital appreciation via the tracking of the performance of the MSCI US Investable Market Real Estate 25/50 Index.
The index itself measures the performance of publicly-traded equity REITs and other real estate-related investments. For the past three years, VNQ has been able to generate 5.81% for investors based on Yahoo! Finance performance numbers.
3. Consumer Discret Sel Sect SPDR ETF (XLY)
As the economy continues its late cycle expansion, consumers are more apt to open their wallets this Labor Day Weekend. XLY seeks investment results that correspond to the price and yield performance of publicly traded equity securities of companies in the Consumer Discretionary Select Sector Index.
XLY employs a replication strategy and invests in the securities comprising the index, which includes securities of companies from a myriad of industries--media; retail; hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services.
4. US Global Jets ETF (JETS)
According to the Airlines for America (A4A), 16.5 million passengers are expected this Labor Day Weekend, which represents an increase of 3.5% versus the previous year. JETS seeks to track the performance of the U.S. Global Jets Index.
JETS utilizes a passive management approach to track the performance of the index, which is composed of stocks in U.S. and international passenger airlines, aircraft manufacturers, airports, and terminal services companies, regardless of market capitalization size. For the past three years, JETS has returned 10.81% according to Yahoo! Finance.
5. Invesco DB Oil (DBO)
The roads are expected to be as busy as the skies this Labor Day Weekend, and the average price for a gallon of gas is expected to be $2.84, which is 20 cents more than the previous year--its highest in four years, based on real-time fuel prices from tech company GasBuddy. DBO has benefitted from a rise in oil prices as a result of supply fluctuations--up 20.30% year-to-date.
DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return, which reflects the changes in market value of crude oil.
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