Bringing you live news and features since 2006 

SportsETFs launches first ProSports ETF


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.

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by