3 ETFs For Disney Earnings

Dow component Walt Disney Co DIS reports fiscal second-quarter results after the close Wednesday in the company's first report in the midst of the coronavirus outbreak.

Down 28.66% year-to-date, Disney is proving its sensitivity to the pandemic. Disneyland and Disney World are closed, though the latter could be inching toward reopening. Disney cruises aren't sailing and there are no sports for ESPN to broadcast. So no, Disney+ and other stay-at-home entertainment options aren't enough to carry the day for the stock in this environment.

Analysts are expecting Disney will post earnings of 93 cents per share on revenue of $18 billion. Last year, those numbers were $1.61 on sales of $14.9 billion.

Nearly 200 ETFs feature exposure to Disney. Here are a few to consider for today's report.

Invesco Dynamic Leisure and Entertainment ETF (PEJ)

The Invesco Dynamic Leisure and Entertainment ETF PEJ is the traditional ETF with the largest Disney allocation at 6.26%, and this fund is an eclectic mix of companies with some positive coronavirus leverage, such as Domino's Pizza DPZ and others that are being hammered by the pandemic.

In other words, PEJ's problems are evident and they can't all be heaped on Disney. For example, the fund has a 21.46% weight to industrial stocks, all of which are airlines. The ETF holds three casino stocks, another theme park operator, cinema operators and live venue firms.

Bottom line: Disney means something to PEJ, but this fund needs a lot of help from the broader economy to get in gear.

John Hancock Multifactor Media and Communications ETF (JHCS)

The John Hancock Multifactor Media and Communications ETF JHCS was one of the first ETFs dedicated to the communications services sector that does not follow a cap-weighted methodology. JHCS emphasizes size, profitability and lower relative price.

That scheme reduces the dominance of Facebook FB and Alphabet GOOG GOOGL that's so common with this sector's ETFs. In fact, Netflix NFLX, a stock winning the shelter-in-place battle, is the largest JHCS components at almost 7.2%.

Disney is the seventh-largest holding in this Hancock ETF at a weight of nearly 5%.

RYZZ Managed Futures Strategy Plus ETF (RYZZ)

The RYZZ Managed Futures Strategy Plus ETF RYZZ is a long/short managed futures strategy that, believe it or not, lays claim to having the largest Disney weight at about 9.6%.

Disney is the fund's fifth-largest long component, but Alphabet is No. 1 at more than 27%.

Photo courtesy of Disney.

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Posted In: EarningsLong IdeasNewsSector ETFsBroad U.S. Equity ETFsShort IdeasPreviewsTrading IdeasETFsCoronavirusCovid-19Disney+
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