One ETF is a the quintessential reopening play and it's on the way to a record high amid surging optimism for the travel and leisure industry. The Invesco Dynamic Leisure & Entertainment ETF — which trades under ticker PEJ — is at an all-time high, up about 7.6% in the last one week and nearly 12% this month as signs point to a return to normal in travel. The exchange-traded fund is made up of 30 U.S. leisure and entertainment companies with price momentum, earnings momentum, quality, management action, and value, according to Invesco. The fund is up more than 34% in 2021. "These are companies that are principally engaged in the design, production or distribution of goods or services in the leisure and entertainment industries," according to Invesco. After the Covid-19 pandemic evaporated demand for travel and leisure, the industry is finally coming back as the vaccines roll out and states begin to ease lockdown restrictions. Air travel over the weekend hit its highest level in more than a year and many investors and economist expected a boom in travel from pent-up demand. Boosting sentiment further, the government pushed through a $1.9 trillion stimulus package last week that is sending $1,400 direct payments to million of Americans. "Now, with COVID ending and the labor market improving, it stands to reason that people who receive a check but that also might now be experiencing financial hardship will use it for more discretionary spending, including booking future travel and going out to eat. As such, we view the stimulus as tangentially positive for PEJ, the Invesco Dynamic Leisure and Entertainment ETF," said Tom Essaye, editor of the Sevens Report. Some of the ETF's top holdings are soaring. Shares of movie theater company AMC Entertainment is up 75% this month. The Invesco Dynamic Leisure & Entertainment ETF's top holding, ViacomCBS , is up nearly 50% in March. TripAdvisor is up 18% this month. Discovery is up nearly 43% in March. Eventbrite is up nearly 25% in March and Boyd Gaming and Brinker International are up 6% and 10% in March, respectively. Penn National Gaming is up more than 7% this month. The ETF has an expense ratio of 0.69%. — with reporting from CNBC's Michael Bloom.
The AMC Empire 25 near Times Square is open as New York City's cinemas reopen for the first time in a year following the coronavirus shutdown, on March 5, 2021.
Angela Weiss | AFP | Getty Images
One ETF is a the quintessential reopening play and it's on the way to a record high amid surging optimism for the travel and leisure industry.