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SportsETFs launches first ProSports ETF

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SportsETFs has launched the ProSports Sponsors ETF, its first ETF. The fund tracks the ProSports Sponsors Index, an index that tracks the performance of the official corporate sponsors of the major professional American football, basketball, baseball, and hockey leagues.

The equally weighted index seeks to take advantage of the growth potential of companies that partner with professional sports leagues and offers broad market exposure with holdings in several sectors, including consumer discretionary, information technology, financials, energy, and healthcare. The index rebalances at least four times a year. Sponsors are rebalanced on the last trading day in March, August, and September, and broadcasters are rebalanced on the last trading day in December.

SportsETFs writes that typically, as large cap companies, the companies involved in these partnerships have enough free cash flow to afford a league sponsorship or broadcasting rights. The firm reports that on a compound annual growth rate, in North American sports the media rights alone are projected to increase by 5.5 per cent to USD21.3 billion through 2020, and sports sponsorships by 3.9 per cent to USD18.7 billion, according to PwC’s Sports Outlook.
 
“FANZ is the first ETF that allows investors and sports fans to participate in the financial relationships between sports leagues and their corporate partners. While other products in the market offer strategies that invest in sporting goods or leisure & entertainment, the ProSports Sponsors ETF holds companies that invest in high-profile marketing partnerships that target a specific audience,” says Nick Fullerton, president and co-founder of SportsETFs and president of Fullerton Advisors. “FANZ can be a core equity position in an investor’s portfolio while also being an exciting way to financially participate in something fans understand and love.”
 
“Following the investment strategy of the famed portfolio manager Peter Lynch, who said, ‘invest in what you know,’ sports fans now have the opportunity to invest in a diversified portfolio of brands that they recognize in one fund. Our research demonstrates that the typical avid sports fan is a financially responsible individual that has disposable income to spend on sports merchandise, tickets, and TV packages. FANZ seeks to provide them with access to capture the growth opportunities presented by these companies,” says Jim Kozimor, co-founder and chief strategy officer of SportsETFs and announcer with the NBC Sports Group.
 
Currently, there are 66 names in the fund with the expectations that more will be added to the ProSports Sponsors Index, reflecting what is expected to be an upward trend in league sponsorships.

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