There is a new exchange-traded fund (ETF) out there for investors who are bullish on the travel sector. The AdvisorShares Hotel ETF (NYSEArca:BEDZ) began trading on April 21 and it could be a great buy if travel picks up later this year.
The ETF is focused on a variety of travel-related properties, including gaming and leisure, and it even includes Airbnb (NASDAQ:ABNB). With vaccines being rolled out and consumers eager to get back to travelling and vacationing, BEDZ can be a great way to tap into that recovery. But even if it doesn't happen right away, it could be a good buy-and-hold investment. On the fund's page, it cites a source that claims the hotel industry will make a full recovery by 2023.
The vast majority of the fund's exposure is to the U.S. market and the bulk of its stock fall into either the large cap (37%) or mega cap (40%) categories. The ETF's top holding is Vici Properties (NYSE:VICI), which has some of the hottest gaming and entertainment properties in its portfolio, including the Caesars Palace in Las Vegas.
Vici's stock has doubled in the past year and it could be an even hotter buy as more tourists return to Sin City. The fund also includes other big names like Wyndham Hotels & Resorts (NYSE:WH) and Marriott International (NASDAQ:MAR)
In total, there are 30 stocks in the fund that can give investors many ways to take advantage from a potentially strong economy this summer, if all goes well and COVID-19 cases fall.
The fund has a net expense ratio of 0.79%
