What this ETF is trying to do

The Invesco Leisure and Entertainment ETF (ticker: PEJ) is designed to invest in companies related to the leisure and entertainment industries. This includes businesses involved in travel, dining, hotels, and various forms of entertainment.

What the numbers show

The current price of PEJ is $63.35. Based on an estimated price from roughly one year ago of $58.21, the ETF has seen growth in its share price.

When looking at performance, it is important to distinguish between price return (the change in the share price) and total return (which includes both price changes and distributions).

• Year-to-Date (YTD): The YTD price return is approximately 3.29%, while the YTD total return is approximately 3.74%.

• One-Year: The one-year price return is approximately 8.83%, and the one-year total return is approximately 9.43%.

• Three-Year: The three-year price return is approximately 68.57%, and the three-year total return is approximately 70.52%.

• Five-Year: The five-year total return is approximately 24.38%.

Income and distribution explanation

PEJ provides cash distributions to investors. The distribution yield is approximately 0.53%. This number describes the cash paid out relative to the ETF's price. The trailing distributions were $0.3368.

The fund usually pays these distributions on a quarterly basis, with 4 payments recorded over the last 12 months. It is important to remember that a distribution yield is not the same as a total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding price erosion (the decline in the market price of the shares), the ETF has an erosion score of 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Top Holdings

The following are the top holdings in the portfolio (note that this is a partial list):

• Marriott International Inc Class A: 5.43%

• Delta Air Lines Inc: 5.40%

• Sysco Corp: 5.01%

• Live Nation Entertainment Inc: 4.98%

• Starbucks Corp: 4.82%

• Viking Holdings Ltd: 4.80%

• Airbnb Inc Ordinary Shares Class A: 4.59%

• Expedia Group Inc: 4.17%

• AMC Entertainment Holdings Inc Class A: 3.23%

• Pursuit Attractions and Hospitality Inc: 3.19%

Please note that holdings can change over time.

Pros

• The ETF has shown positive price returns across one-year and three-year periods.

• The erosion-risk measurement is rated as "good."

Cons

• The distribution yield is relatively low at approximately 0.53%.

Beginner takeaway

PEJ focuses on the leisure and entertainment sector. While it provides some quarterly income, its main performance driver in the reported periods has been share-price growth. The data shows no detected price erosion.