Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Yellow Card For Sports ETF

By BlackBull MarketsETFsSep 01, 2021 10:28PM ET
www.investing.com/analysis/yellow-card-for-sports-etf-200600685
Yellow Card For Sports ETF
By BlackBull Markets   |  Sep 01, 2021 10:28PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
US500
-1.51%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AJAX
-2.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NKE
-12.81%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UAA
-9.77%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MSGS
-0.86%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ASR
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Cristiano Ronaldo announced that he would be leaving Juventus Football Club (MI:JUVE) and returning to play for the club where he started his professional career, Manchester United (NYSE:MANU). While I’m not a football fan or follower, I understand that Ronaldo is one of the most recognisable faces on the planet and one of the highest-paid athletes. Hence, this transfer can have huge financial ramifications for Ronaldo and associated clubs, apparel makers, and sponsors.

Coincidently, both Juventus and Manchester United are two of the few football clubs publicly listed and traded on open exchanges. Here we can see the Ronaldo effect in action. In the hours immediately preceding the transfer announcement, MANU shares jumped 8% before subsiding, ending the Friday session up 5.8%.

Meanwhile, JUVE rose 1.2%, presumably on the notion that the club will now be able to acquire younger (and less salary heavy) substitutes to help them to return to championship contention.

In light of this announcement, what better time to highlight sport-themed ETFs. Some of which will no doubt have been impacted by Ronaldo’s presence in the sport and his recent transfer between football behemoths.

Roundhill Pro Sports, Media & Apparel ETF

There are surprisingly few ETFs centred on sport-based equities. I assumed the popularity of sports would translate into the popularity of stocks and funds comprised of sporting teams and sporting gear makers. However, there are very few available. One that fits the bill is Roundhill Pro Sports Media & Apparel ETF (NYSE:MVP)

The selection of equities in the fund will impress football fans more than followers of other sporting codes. The ETF consists of all the major listed Football franchises, including AFC Ajax (AS:AJAX) and AS Roma (MI:ASR). MANU and JUVE are both included in the fund, each held at a weight above 5% of the total.

JUVE
JUVE

It should be noted, the stock prices of many of these Football clubs have performed rather poorly of late, compared to the overall market. One issue these clubs face is scaling further and gaining new fans while already at the pinnacle of the sport. This could be why their respective stock prices are relatively stagnant. Buying top-rated players, such as Ronaldo, could be one way to overcome limitations in reaching new fans. This strategy clearly worked for Juventus, but is evidently not a great long term solution. JUVE has since retraced to below the 23.6% FIB level.

Non-Football holdings

For the fans of other sporting codes, the fund includes holdings in the New York Knicks and New York Rangers (NYSE:MSGS), Ferrari (NYSE:RACE), and Callaway Golf (NYSE:ELY).

Sports Apparel Companies such as Asics (TYO: 7936), Adidas (OTC:ADDYY), Nike (NYSE:NKE), Puma SE (DE:PUMG), and Under Armour (NYSE:UAA) are all included in the ETF and will undoubtedly be some of the better performers. For the past six months, Puma, NKE, and Asics are up 18.4%, 21.7%, and 31.6%, respectively.

Admittedly, MVP ETF isn’t the best performing fund around… yet.

In its short history (released March 2021), the fund is down 1.56%. This value is not hugely disappointing, but nothing to celebrate, considering the broader market S&P 500 is up 12.2% in this timeframe.

SPAC
SPAC

Arguably the fund is too young to judge in terms of returns. Interestingly, you will find several SPACs within the fund that has yet to acquire a suitable sporting-based company. Now, I don’t know how common it is for ETFs to be loaded with SPACs. At a glance, I count five SPACs, including the Alex Rodriguez associated, Slam Corp. Perhaps the number of SPACs included in this ETF indicates a lack of viable sports-based equities available. Either way, MVP’s success might be dependent on the future decisions of the SPACs included in the fund.

Yellow Card For Sports ETF
 

Related Articles

Tim Knight
Stay That Way By Tim Knight - Sep 20, 2022

I’ve mentioned the Health Care Select Sector ETF (NYSE:XLV) as a terrific short (by way of its diamond top). This is unfolding beautifully.

Kalen Houck
SPY: Lower Prices Ahead? By Kalen Houck - Sep 17, 2022

SPY had an interesting week as the sell-off continued. It faked many people out on Sept. 12 as it poked above the minor downtrend line we've had over the last few weeks. It looked...

Yellow Card For Sports ETF

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email