AdvisorShares has unveiled two new actively managed ETFs targeting industries expected to prosper as the economy reopens from the Covid-19 shutdown.
AdvisorShares has launched two active ETFs targeting the hotel and restaurant industries.
The AdvisorShares Hotel ETF (BEDZ US) invests in companies operating hotels as well as those in related travel industries such as holiday resorts and cruises.
The AdvisorShares Restaurant ETF (EATZ US), meanwhile, focuses on the food-service industry including restaurants, bars, fast food facilities, and caterers.
The funds have listed on NYSE Arca and come with expense ratios of 0.79%.
Noah Hamman, Chief Executive Officer of AdvisorShares, commented: “We believe BEDZ and EATZ are uniquely positioned with their upside potential during an economic recovery and for the long-term growth opportunity that they may offer.
“Restaurants and hotels had to innovate to survive during the pandemic and, as we turn the corner towards a brighter outlook, BEDZ and EATZ can allow advisors and investors to participate and invest in the potential recovery of these industries through an innovative ETF structure.”
Dan Ahrens, Chief Operating Officer of AdvisorShares, added: “We believe in the bullish investment case for hotels and restaurants both in the near-term and the long-term. Pre-lockdown, these were resilient industries that thrived through decades of growth and numerous market cycles.
“As lockdown and travel restrictions ease along with pent-up consumer demand, we feel there is a compelling investment opportunity to navigate exposure to these key areas of the marketplace.”
Investment approach
Each fund seeks long-term growth of capital by investing in US-listed equities (including ADRs) of companies across all market capitalizations. To be eligible for inclusion, a firm must derive at least half of its revenue from industries related to the hotel or restaurant investment themes.
AdvisorShares seeks out companies with dominant market positions, focusing on profitability, earnings quality, upside growth, and the potential for international expansion. Stock technical attributes are also considered.
Each ETF holds fewer than 50 stocks which are weighted to emphasize fundamental strength metrics.
BEDZ currently has 30 holdings, the largest of which are VICI Properties (4.9%), Extended Stay America (4.7%), Airbnb (4.7%), Hilton Grand (4.7%), Full House Resorts (4.7%), and Marriott International (4.6%).
EATZ also has 30 constituents. Notable positions include Jack in the Box (6.1%), Del Taco Restaurant (5.8%), Yum! Brands (5.7%), Brinker International (5.7%), and Darden Restaurants (5.2%).