If you’re looking to invest in the cruise industry, you might be wondering if there’s an index fund that tracks the performance of cruise lines. An index fund is a type of mutual fund or exchange-traded fund (ETF) that tracks a specific market index. It’s a popular investment option for those who want to diversify their portfolio and reduce their risk.
Unfortunately, there isn’t currently an index fund that focuses solely on cruise lines. However, there are some ETFs and mutual funds that have exposure to the industry. Let’s take a closer look at some of these options.
1. Invesco Dynamic Leisure and Entertainment ETF (PEJ)
The Invesco Dynamic Leisure and Entertainment ETF is an ETF that invests in companies within the leisure and entertainment industries, including cruise lines. The ETF uses a proprietary selection methodology to choose companies based on factors such as earnings growth, price momentum, quality, management action, and value.
As of June 2021, PEJ had about 9% of its holdings in cruise line stocks such as Carnival Corporation and Royal Caribbean Group.
Pros:
– Provides exposure to multiple industries within the leisure and entertainment sector
– Uses a unique selection methodology
Cons:
– Only has a small percentage of holdings dedicated to cruise lines
– May not be as focused on the cruise industry as some investors would like
2. Fidelity Select Leisure Portfolio (FDLSX)
The Fidelity Select Leisure Portfolio is a mutual fund that invests in companies within the leisure industry, including cruise lines. The fund uses fundamental analysis to choose companies with strong growth prospects and reasonable valuations.
As of June 2021, FDLSX had about 9% of its holdings in cruise line stocks such as Norwegian Cruise Line Holdings Ltd. and Carnival Corporation.
Pros:
– Managed by a reputable investment firm
– Provides exposure to multiple industries within the leisure sector
3. ETFMG Travel Tech ETF (AWAY)
The ETFMG Travel Tech ETF is an ETF that invests in companies within the travel technology sector, including companies that provide services to cruise lines. The ETF uses a rules-based methodology to select companies based on factors such as revenue growth, earnings quality, and management efficiency.
As of June 2021, AWAY had about 4% of its holdings in cruise line stocks such as Carnival Corporation and Royal Caribbean Group.
Pros:
– Provides exposure to companies that provide services to cruise lines
– Uses a unique selection methodology
Cons:
– Only has a small percentage of holdings dedicated to cruise lines
– May not be as focused on the actual cruise industry as some investors would like
Conclusion
While there isn’t currently an index fund that focuses solely on cruise lines, there are some options for investors who want exposure to the industry. However, it’s important to note that these funds may not be as focused on the cruise industry as some investors would like and only have a small percentage of their holdings dedicated to cruise line stocks.
As with any investment decision, it’s important to do your research and consult with a financial advisor before making any decisions.