Top ETF Gameplays for 2018
This article was originally published on ETF Trends.com.
Millions of Americans watch their favorite pro sports teams compete every day, and that provides a great opportunity for corporations to expose their brands to the loyal consuming masses.
On the upcoming webcast Tuesday, Feb. 13 (available live and on demand for CE Credit), Top ETF Gameplays for 2018 , Nick Fullerton, Co-Founder and Manager of SportsETFs, Paul Starkey, Founder of Indexxchange and Sports ETFs Advisory Board Member for SportsETFs, and Tim Hinchey, CEO of USA Swimming, will analyze investing opportunities tied to sponsorships between the core four pro sports leagues and companies that partner with them.
Specifically, the ProSports Sponsors ETF (FANZ) tries to reflect the performance of the ProSports Sponsors Index, which is comprised of companies which are official sponsors of the major professional football, baseball, hockey and basketball leagues in the United States, along with national sports broadcasters with rights agreements with such leagues.
The idea is that investors may find a potential opportunity through businesses that can increase brand awareness, grow revenues and market share through their attachment to sports. Companies that invest in pro sports partnerships may exhibit faster than the broader economy. Research also shows that these partnerships have an influence on the purchasing decisions of fans who follow their favorite sports.
"Just talking about sports and investing is fun for everyone," Fullerton, said at the Inside ETFs 2018 conference. "Over half the population; they're really big sports fans and we looked at this industry and it's growing faster than the overall economy."
The new ETF will try to take advantage of the growth potential of these companies partnered with major sports leagues and encompass market exposure in several sectors, including consumer discretionary, information technology, financials, energy and health care.
FANZ may also be seen as a type of value play as the large-cap components involved in these sports deals typically have enough free cash flow to afford a league sponsorship or broadcasting rights.
"All these companies that are official partners of the league's like official Hotel Marriott, the official car of the NFL, which Ford, the official grass of Major League Baseball, which is Scott's, and the web service provider of Major League Baseball, which is Amazon, so all of these companies are benefiting from their partnerships with leagues," Fullerton added.
Financial advisors who are interested in learning more about opportunities in sports advertising can register for the Tuesday, February 13 webcast here.
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