AdvisorShares launches ETFs with dedicated exposure to hotels and restaurants
AdvisorShares has launched the AdvisorShares Hotel ETF (BEDZ) and the AdvisorShares Restaurant ETF (EATZ), the only US-listed ETFs to provide dedicated exposure to their respective sectors.
BEDZ invests solely in the hotel industry and its related services, including hotels, resorts, cruise lines, and other travel-related services. EATZ invests solely in the restaurant and food service industry, including restaurants, bars, pubs, fast food, take out facilities and food catering services.
“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,” says Noah Hamman, chief executive officer of AdvisorShares. “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.”
BEDZ and EATZ each seek long-term capitalisation and invest globally in equites across all market capitalisations. Both strategies seek to identify companies with dominant positions in their respective market, focusing on profitability, earnings quality, upside growth as well as technical attributes. Each ETF typically holds 50 or fewer equities which are fundamental strength-weighted, dynamically rebalanced with active management, and with a goal of maintaining low turnover for their respective portfolios.
“We believe in the bullish investment case for hotels and restaurants both in the near-term and the long-term,” says Dan Ahrens, chief operating officer of AdvisorShares and portfolio manager of BEDZ and EATZ. “Pre-lockdown, these were resilient industries which 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.”
Ahrens is also portfolio manager of the AdvisorShares Vice ETF (Ticker: VICE), the AdvisorShares Pure Cannabis ETF (Ticker: YOLO) and the AdvisorShares Pure US Cannabis ETF (Ticker: MSOS).