As the countdown has begun for the FIFA World Cup, to be held in Russia starting Jun 14, football is now set to take center stage for a month. Apart from sports lovers, the event also means big for the business world. So, we have a game plan for investors who want to cash in on the mania.
Consumer
The list of FIFA partners and sponsors includes big consumer stocks like Coca-Cola (NYSE:KO) and McDonald's (NYSE:MCD) MCD. As a result, consumer ETFs like Consumer Staples Select Sector SPDR Fund (XLP), Fidelity MSCI Consumer Staples Index ETF (FSTA) and Vanguard Consumer Staples ETF (VDC) will benefit from their considerable exposure to KO.
SPDR Dow Jones Industrial Average (SI:SPDR) ETF (V:DIA) and Consumer Discretionary Select Sector SPDR Fund ( (V:XLY) ) also come under the spotlight owing to their exposure to MCD.
Media & Telecom
As followers of the event will stay tuned on television and newspaper, media stocks should profit out of the event. Twenty-First Century FoxInc.'s FOXA Fox Sports is the official broadcaster, while Telemundo, owned by Comcast Corporation (NASDAQ:CMCSA) , will be airing the matches in some South American countries.
So, investors can definitely take a look at media ETFs like Invesco Dynamic Media ETF ( (V:PBS) ) and iShares Evolved U.S. Media and Entertainment ETF(IEME) (read: Comcast Might Thwart Disney-Fox Deal: Media ETFs in Focus).
Internet & Social Media
More than television, social media rules any event these days. And if the event is as high profile as FIFA World Cup, social media stocks like Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR) are sure to gain. Needless to say, the pure-play social media ETF Global X Social Media Index ETF ( (CM:SOCL) ) has every reason to do well ahead.
Also, extreme usage of search engines to gain information on the World Cup will veer investors’ attention to Internet ETFs like First Trust Dow Jones Internet Index Fund FDN and Invesco NASDAQ Internet ETF PNQI (read: Social Media ETFs to Gain as Twitter Prepares for S&P 500).
Tourism
Demand for hotels, airlines, food and drinks will invariably be high, keeping tourism and entertainment stocks steady. Per the Russian Ministry of Economic Development, foreigners will shell out around $1.6 billion in the upcoming FIFA World Cup.
As a result, airlines stocks and the ETF US Global Jets ETF (JETS) should gain some traction on higher passenger load factor. Several hotel stocks including Marriott International Inc. MAR and Hyatt Hotels Corporation H will likely benefit from this global multi-sport event.
While fine-dining restaurants are likely to lose, takeaway restaurants are sure to score high as fans won’t want to miss out on a moment of the match. Pizza joints like Domino’s Pizza DPZ should benefit from higher takeaway sales. Investors can thus bet on Invesco Dynamic Leisure and Entertainment ETF (PEJ) to gain exposure to a full array of leisure stocks(read: 4 ETF Ideas to Follow Millennials' Lifestyle).
Russia Stocks and ETFs
The Russian economy should get a boost in the form of more temporary job creation, higher demand for consumer products and services and increased investments in infrastructure. Russia’s deputy prime minister Arkady Dvorkovich expects the tournament to feed in about $30 billion to the economy, much higher the $11 billion of the cost incurred.
Though the gain is minimal compared with the size of the economy, a short-term pickup is anticipated. So, investors can take a look at VanEck Vectors Russia ETFRSX and iShares MSCI Russia ETF ERUS for some gains (read: 4 Country ETFs That Should be Beneficiaries of $70 Oil).
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Facebook, Inc. (FB): Free Stock Analysis Report
Twitter, Inc. (TWTR): Free Stock Analysis Report
Coca-Cola Company (The) (KO): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
SPDR-CONS STPL (XLP): ETF Research Reports
SPDR-DJ IND AVG (DIA): ETF Research Reports
SPDR-CONS DISCR (XLY): ETF Research Reports
PWRSH-ND INTRNT (PNQI): ETF Research Reports
FT-DJ INTRNT IX (FDN): ETF Research Reports
GLBL-X SOCL MDA (SOCL): ETF Research Reports
PWRSH-DYN MEDIA (PBS): ETF Research Reports
PACIFIC (EX: JA (PEJ): ETF Research Reports
ISHARS-MS RUSSA (ERUS): ETF Research Reports
VANECK-RUSSIA (RSX): ETF Research Reports
VIPERS-CONS STA (VDC): ETF Research Reports
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