SAN RAMON, Calif., July 11, 2017 /PRNewswire/ -- SportsETFs, LLC today launched the ProSports Sponsors ETF (BATS: FANZ), its first exchange-traded fund. 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.
Typically, as large cap companies, the companies involved in these partnerships have enough free cash flow to afford a league sponsorship or broadcasting rights. On a compound annual growth rate, in North American sports the media rights alone are projected to increase by 5.5% to $21.3 billion through 2020, and sports sponsorships by 3.9% to $18.7 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," said 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," said 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 we project will be an upward trend in league sponsorships.
About SportsETFs, LLC
SportsETFs offers investors and sports fans the ability to access professional sports-related investment opportunities through an exchange-traded fund. SportsETFs provides investors with the opportunity to invest alongside companies that believe an association with professional sports can lead to greater brand awareness and increased revenues. SportsETFs is backed by rigorous research and an index that seeks to capture the growth in global sports business, and is designed to fit into investor portfolios as a core holding. For more information, please visit http://www.sportsetfs.com, or follow us on Facebook (www.facebook.com/sportsetfs/) or Twitter @SportsEtfs.
Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's prospectus, which may be obtained by visiting www.sportsetfs.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. The Fund may invest a relatively large percentage of its assets in securities denominated in non-U.S. currencies, the values of which may be affected by changes in the currency rates or exchange control regulations. To the extent the Fund invests a significant portion of its assets in the securities of companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region. The Fund's return may not match or achieve a high degree of correlation with the return of the Index. To the extent the Fund's investments are concentrated in or have significant exposure to a particular issuer, industry or group of industries, or asset class, the Fund may be more vulnerable to adverse events affecting such issuer, industry or group of industries, or asset class than if the Fund's investments were more broadly diversified. Small and mid-capitalization companies may be more vulnerable to adverse business or economic events than larger, more established companies. Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value of the Fund. The Fund is not actively managed and therefore the Fund would not sell shares of an equity security unless that security is removed from the Index or the selling of shares is otherwise required upon a rebalancing of the Index. Diversification may not protect against market risk. Holdings are subject to change.
The fund is distributed by Foreside Fund Services, LLC, which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates._
Frank Taylor / Ben Jaffe
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SOURCE SportsETFs, LLC