New ETFs Target Restaurants, Lodging

Today, AdvisorShares rolled out two ETFs that are banking on the revival of industries that have been deeply damaged by the slowly resolving coronavirus pandemic.

The AdvisorShares Hotel ETF (BEDZ) and the AdvisorShares Restaurant ETF (EATZ) focus on lodging and restaurants, two areas hit hard by the pandemic when socializing and travel largely came to a halt.

Both funds come with expense ratios of 0.79% and list on the NYSE Arca.

"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," AdvisorShares CEO Noah Hammond explained.

Methodology

BEDZ and EATZ are actively managed and seek pure-play exposures, with eligible companies generating at least half their revenues from the targeted business activities.

For BEDZ, that means the operation of hotels and resorts, as well as cruise ships, travel agencies, tour operators and similar services. Notably, the fund generally excludes hotels that are attached to casinos, according to the prospectus.

For EATZ, the scope of companies eligible for inclusion covers those operating restaurants, bars, pubs, fast food, takeout and catering services, the document says.

At launch, BEDZ held a portfolio of 30 securities, the largest of which include VICI Properties, Airbnb and Extended Stay America. EATZ also holds a portfolio of 30 securities, but the largest allocations in it are to Jack in the Box, YUM! Brands and Brinker International.

(Use our stock finder tool to find an ETF’s allocation to a certain stock.)

Contact Heather Bell at [email protected]