Tokyo Olympics ETF likely winners without spectators

TTokyo 2020 Olympic Games countdown has started and Japan prepares to host the event from July 23. The International Olympic Committee says organizers have done their best to safely organize spectatorless matches while the coronavirus pandemic is in place.

One of Japan’s most important business leaders said that “the economic losses caused by the Tokyo Olympics without supporters will be ‘enormous’. So far, more than 60 Japanese companies have shelled out a record $ 3 billion for this year’s Olympics and the return on investment could be lower, according to the source.

There are still glimmers of hope throughout history. Entertainment researcher Gracenote Inc. predicts the country could win a record 61 medals, about 50% more than five years ago in Rio, including 26 gold medals. This could benefit sponsors and backers such as Mizuno Corp., the swimwear supplier for the Japan swim team, according to a Bloomberg report.

The Bloomberg article went on to point out that companies that sell fried chicken, food delivery operators and electronics stores selling TVs are likely to benefit from the event, analysts said. “Food and TV purchases are expected to increase as people seek to make the Olympics more fulfilling,” Okasan Securities strategist Naoya Kumagai wrote in a recent report, quoted on Bloomberg.

While this is not a regular Olympics, along with many other analysts we also expect home stocks to benefit from the event as people around the world will try to watch it from their homes. Against this background, below we highlight a few ETFs that are worth investing in in light of the Tokyo Olympics.

ETF to win

Invesco NASDAQ Internet ETF PNQI

Internet stocks and ETFs are the top picks in the home investing category. The fund’s underlying NASDAQ Internet Index is a modified market capitalization-weighted index designed to track the performance of the largest and most liquid U.S. companies engaged in Internet-related activities that are listed on the one of the three main US stock exchanges. Interactive media and services represent approximately 23.3% of the fund. The fund charges 60 basis points in fees (read: ETF strategies to tackle the worsening coronavirus pandemic).

ETF Global X on social networks SOCL

Who can forget social media stocks and ETFs? After all, discussions on any hot topic have spread like wildfire. Social media actions like Facebook (FB) and Twitter (TWTR) are likely to put the event to good use. This should benefit the SOCL fund, which is designed to reflect the performance of companies involved in the social media industry, including companies that provide social networking, file sharing and other web media applications.

John Hancock Multifactor Media & Communications ETF (JHCS)

The National Broadcasting Company or NBC, owned by Comcast Corp. CMCSA, will broadcast coverage of many of the major events – both live and on tape due to the 13 hour time difference in Tokyo. Comcast has over 6% weighting in the JHCS fund. Therefore, the fund deserves close monitoring.

FNB AdvisorShares Restaurant EATZ

This ETF is active and does not track a benchmark. The fund offers exposure to foodservice stocks such as Domino’s Pizza, Pizza Hut and Yum Brands. Demand for food delivery is expected to increase during the event. Therefore, the fund can become a beneficiary. The fund charges 79bp in fees.

IShares MSCI Japan ETF EWJ

Several Japanese sectors and stocks should be on watch for gains. The EWJ fund seeks to track investment results that generally match the price and return performance of the MSCI Japan Index. Industrials, Consumer Discretionary, Information Technology and Healthcare hold double-digit weightings in the fund.

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Comcast Corporation (CMCSA): Free Stock Analysis Report

iShares MSCI Japan ETF (EWJ): ETF Research Reports

ETF Global X Social Media (SOCL): ETF Research Reports

NASDAQ Invesco Internet ETF (PNQI): ETF Research Reports

ETF John Hancock Multifactor Media and Communications (JHCS): ETF Research Reports

AdvisorShares Restaurant ETF (EATZ): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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