Canadian issuer Harvest Portfolios Group has rolled out an ETF providing exposure to global sports and entertainment stocks.
Michael Kovacs, President and CEO of Harvest.
Listed on the Toronto Stock Exchange, the Harvest Sports & Entertainment Index ETF is referenced to the Solactive Sports & Entertainment Index and comes with a fee of 0.50%.
The underlying index tracks the performance of companies engaged in five industries – iGambling, eGaming, sports equipment & apparel, event bookings & entertainment, and professional sports.
It includes stocks listed on regulated stock exchanges in North America and select global developed markets.
Potential constituents are identified based on a screening of publicly available information using a proprietary natural language processing algorithm – called ARTIS – developed by Frankfurt-based index provider Solactive.
To be eligible for inclusion in the index, a company must align with one of the index’s five target industry categories and have a market capitalization in excess of $100m and a minimum average daily value traded of at least $1m over the last three months.
Within the five industry categories, each company that is identified as being relevant receives a score, determined by the algorithm, that reflects the intensity of its exposure to the industry category.
The index is composed of the ten highest-ranking stocks within each industry category for iGambling, eGaming, and sports equipment & apparel, and the five highest-ranking stocks for the event bookings & entertainment and professional sports industry categories.
The 40 selected stocks are equally weighted resulting in industry allocations of 25% each for iGambling, eGaming, and sports equipment & apparel and 12.5% each for event bookings & entertainment and professional sports.
Well-known names in the index include Caesars Entertainment, DraftKings, MGM Resorts, Activision Blizzard, Electronic Arts, Adidas, Nike, Eventbrite, Live Nation, Manchester United and Liberty Media Corp-Liberty Formula One.
The portfolio is reconstituted and rebalanced quarterly.
Commenting on the launch, Michael Kovacs, President and CEO of Harvest, said: “We are pleased to bring another new and exciting ETF to Canadian investors. HSPN will encapsulate the fast growth of the eGaming and iGambling industries, combined with the steady growth of sports teams, merchandizing, ticketing and apparel. As entry gates open around the world again, so does the enthusiasm for all things sports. Investors can now invest in the areas they love to participate in.”
The fund is available with USD (HSPN.U CN) and CAD (HSPN CN) share classes.