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Frozen 2 Sets Box Office Record: ETFs to Surge

Sweta Killa

After five blockbuster films like Avengers: Endgame, Toy Story 4 and The Lion King, the Walt Disney Company DIS continued its strong momentum this year with a blockbuster opening weekend from Frozen 2.

The sequel to the 2013 Oscar-winning flick raked in $127 million in North America in the first three days of debut on Nov 22, beating the company’s forecasts and the box office debut of the original Frozen. Disney had estimated opening weekend sales of as much as $120 million in the United States and Canada, according to Bloomberg. Box Office Mojo also forecasts the Disney movie to take in $120 million at the weekend's start. Looking back, the first Frozen movie had also opened over Thanksgiving, earning $67 million in the three-day weekend and $93 million in five days.

Outside the United States, Frozen 2 has grossed in about $223 million, taking the total to $350.2 million worldwide (read: Is it the Right Time to Buy Dollar ETFs?).

According to the Deadline points, Frozen 2’s debut is the fifth-ever opening for November, edging out Hunger Games: Catching Fire ($158 million), Twilight Saga: New Moon ($142.8 million), Twilight Breaking Dawn 2 ($141 million), Breaking Dawn 1 ($138.1 million) and Harry Potter and the Deathly Hallows Part 1 ($125 million). Industry experts expect Frozen 2 to become the studio’s sixth billion-dollar movie of 2019 with an opening weekend earning of $120-$140 million.

The sequel of Frozen comes at a time when the North American box office is down roughly 7% compared to the same period last year. And with just five weekends left this year, the success of Frozen 2 could reverse this scenario from loss to profit (see: all the Consumer Discretionary ETFs here).

Given the huge dominance of Disney at the box office this year, investors could tap the success with consumer ETFs having the largest exposure to this global media and entertainment company. Below we have highlighted some of them:

iShares Evolved U.S. Media and Entertainment ETF IEME

This is an actively managed ETF that employs data science techniques to identify companies with exposure to the media and entertainment sector. Holding 88 stocks in its basket, Disney occupies the top position in the basket with 6.8% share. The fund has accumulated $5.5 million in its asset base and charges 18 bps in annual fees. It trades in a paltry volume of around 3,000 shares (read: ETFs to Tap on Netflix' Strong Subscriber Comeback in Q3).

Multifactor Media and Communications ETF JHCS

This ETF targets a wide range of U.S. media and communication stocks to exploit the sector's opportunities by tracking the John Hancock Dimensional Media and Communications Index. It holds 60 stocks in its basket with DIS taking the top spot at 6.2% share. JHCS has managed assets worth $22.1 million and charges 40 bps in annual fees. It trades in average daily volume of 2,000 shares.

iShares U.S. Consumer Services ETF IYC

This ETF offers exposure to U.S. companies that distribute food, drugs, general retail items and media by tracking the Dow Jones U.S. Consumer Services Capped Index. It holds 158 stocks in its basket, with Disney taking the third spot at 5.5%. The fund has amassed $913.4 million in its asset base, and trades in a lower volume of 40,000 shares a day, on average. It charges 42 bps in annual fees from investors and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Gearing Up for Holiday Season: Amazon Versus Walmart ETFs).

Fidelity MSCI Communication Services Index ETF FCOM

This fund follows the MSCI USA IMI Communication Services 25/50 Index. It holds 107 stocks in its basket with Disney occupying the fifth position at 4.9%. The product has amassed $469.7 million in its asset base and trades in average daily volume of 90,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.

Vanguard Communication Services ETF VOX

This fund also targets the communication sector by tracking the MSCI US Investable Market Communication Services 25/50 Index. Holding 114 stocks in its basket, Disney takes the sixth spot with 4.2% share. VOX has AUM of $2.1 billion and trades in a good volume of 164,000 shares a day, on average. It charges 10 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.

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