Sports Betting & Gaming stocks are outperforming in recent weeks. Some of the more recent catalysts include strong earnings, revenge travel, Vegas occupancy, China slowly opening and the start of the NFL & College Football seasons. California also has a ballot measure for legalization coming in November that could also be huge catalyst for the industry.

With those factors in mind, lets take a look at the iBET (IBET) Sports Betting & Gaming ETF which is up nearly 22% in the past month and some of the funds top holdings.

Top Holdings of the iBET (IBET) Sports Betting & Gaming ETF
Draft Kings (DKNG) – One of the most heavily traded stocks in this industry, it’s one of the best known brand names and was part of the meme stock frenzy. For the three months ended June 30, 2022, DraftKings reported revenue of $466 million, an increase of 57% compared to $298 million during the same period in 2021. “DraftKings had an excellent second quarter, exceeding expectations for revenue and Adjusted EBITDA,” said Jason Robins, DraftKings’ co-founder, Chief Executive Officer and Chairman of the Board. Draft Kings has been on a tear up nearly 80% in the past month.

Current iBET (IBET) Sports Betting & Gaming ETF Exposure – 8.06%

Flutter (FLTR) – Flutter is mostly known in the US by its subsidiary Fan Duel. Flutter issued its first half 2022 earnings report that showed revenues increased 10.9% year-over-year to $4.12 billion, aided in part by the success of the company’s sports betting segment in the U.S. led by FanDuel. “We are particularly pleased with momentum in the US where we extended our leadership in online sports betting with FanDuel claiming a 51% share of the market and number one position in 13 of 15 states, helping contribute to positive earnings in Q2,” Flutter CEO Peter Jackson said. So while Draft Kings is more heavily traded FLTR is actually the market share leader in the US currently. At one point it was believed that Fan Duel would be going public, but the recent market has derailed IPOs. Keep an eye on a potential partnership with FuboTV and Flutter when it comes to sports betting. Flutter has a stronghold on European Soccer and FuboTV is well known for its Soccer package.

Current iBET (IBET) Sports Betting & Gaming ETF Exposure – 5.61%

Penn Entertainment (PENN) – Penn is most known for it’s partial ownership of Barstool Sports, the Dave Portnoy lead sports, gaming and entertainment company. They also own The Score and MyChoice and a host of Racetracks and Casinos. The company recently changed its name to Penn Entertainment from Penn National Gaming. In terms of growth Penn has been able to grow its EPS at 39% per year over three years, CEO Jay Snowden pointed out that $PENN beat consensus on revenues and EBITDAR and generated sequential upside over last quarter due to “performance of our interactive segment and strong results at our retail operations despite a tough comp against the second quarter last year.”

Current iBET (IBET) Sports Betting & Gaming ETF Exposure – 4.81%

Other Interesting Holdings of the iBET (IBET) Sports Betting & Gaming ETF
The Lottery Corporation (TLC – AU) – The Lottery Corporation a company that operates in Australia, recently went through a de-merger with Tabcorp TAH – AU. Recent rumblings suggest that the de-merger was made to make The Lottery Corporation, which is a great cash flow business more attractive for a potential buyout down the road.

Bally’s (BALY) – Bally’s Corporation reported second-quarter net income of $59.5 million. On a per-share basis, the company had net income of 98 cents. Earnings, adjusted for non-recurring gains, came to 32 cents per share. The results beat Wall Street expectations. Ballys is one to watch in the future as they are making a major push into Vegas with their purchase of the Tropicana Hotel. Bally’s is also working on a new waterfront casino in Chicago.

We find the iBET (IBET) Sports Betting & Gaming ETF to be the most interesting of the Sports betting ETFs because it is the only actively managed fund in the space and not tied to an index. YTD iBET has outperformed BETZ by nearly 5%. Jeffrey Kamys the Chief Investment Strategist of the fund noted that, “with so many mergers, territorial carveouts and expansion plans happening in the space, active management is the only thing that makes sense” Kamys also note that the Sports Betting & Gaming industry is currently in, “inning zero” especially when it comes to US expansion.

With Summer here and the pandemic finally relenting at least a little bit, people are taking to the airways and the open roads in what is being called revenge travel. Airlines, Cruise Lines and Hotels stand to benefit a great deal from the travel boom, and these are the ETFs to play that trend.

AdvisorShares Hotel ETF (BEDZ) – Expert analysis believes that by 2026, global hotel revenue will reach around $480 billion compared to $300 billion this year. BEDZ is primarily invested in the hotel industry but also tracks some travel services. As summer approaches BEDZ will look to benefit from a busy travel season. BEDZ is down 24% YTD and its top three holdings are, Bluegreen Vacations Holding Corp 7.98%, Target Hospitality Corp. 6.51%, and Red Rock Resorts, Inc. 6.38%.

Defiance Hotel, Airline, and Cruise ETF (CRUZ) – As the pandemic comes to a close we are seeing new growth in the travel industry and as more people are working remotely there is more room to blend travel and work. CRUZ is looking to benefit from increased travel, following the BlueStar Global Hotels, Airlines, and Cruises Index which tracks 55 stocks. The global luxury travel market is expected to grow on a compound annual growth rate of 8.8% through 2028 which would significantly benefit CRUZ. CRUZ is down 28% YTD and its top three holdings are, Marriott International, Inc. 9.13%, Hilton Worldwide Holdings Inc 8.36%, and Delta Air Lines, Inc. 6.03%.

ETFMG Travel Tech ETF (AWAY) – AWAY is the first ETF of its kind, giving investors direct access to technology companies within the travel and tourism industry. AWAY tracks the Prime Travel Technology Index NTR which looks to track companies helping to pave the new era of travel. A statistic used in AWAYs methodology is that 66% of millennials will book their travel from their smartphone and 74% will use it to research travel. AWAY is down 26% YTD and its top three holdings are, Tongcheng Travel 4.76%, TravelSky Technology 4.63%, and Uber Technologies Inc 4.43%.

U.S. Global Jets ETF (JETS) – As the name suggests, JETS gives investors access to the global airline industry as well as manufacturers from all around the world. If the summer season proves to be as busy as expected JETS will be in a prime position to grow as it is solely invested in air transportation. JETS tracks the U.S. Global Jets Index, comprised of U.S. and international airlines, manufacturers, and airports. JETS is down 23% YTD and its top three holdings are, Southwest Airlines Co 9.66%, United Airlines Holding Inc 9.52%, and American Airlines Group Inc 9.38%.

If you’re looking for a way to hedge inflation and interest rate hikes, bond ETFs may be right up your alley. As the name suggests, bond ETFs will only consist of bonds with some ETFs choosing to represent the total market and some choosing to cut it into pieces, e.g., investment-grade or short-term bonds. Bond ETFs can be passively or actively managed but most follow the passive model and track a specific index. There are a lot of benefits that come with bond ETFs such as, monthly dividends, interest payouts, and portfolio diversification or hedging.

Here are a few bond ETFs to consider.

ProShares UltraShort 20+ Year Treasury (TBT) – TBT looks to offer investors -2x exposure to daily moves in Treasury bonds that have more than 20 years left to maturity, offering a daily reset which allows investors a way to hedge or position against rising interest rates. The -2x leverage of TBT makes it more of a short-term asset rather than something to hold. This instrument works best when the Fed is raising rates and inflation is on the rise. This fund is up 73% YTD.

iShares 20 Plus Year Treasury Bond ETF (TLT) – Similar to TBT, TLT follows an index of Treasury bonds with more than 20 years to maturity with an average of 26 years. TLT offers a low expense ratio as well as liquidity and could see gains of 25% if yields are to drop just 1%. This instrument works best when the Fed is cutting rates. This fund is down 27% YTD.

Direxion Daily 20+ Year Treasury Bear 3X Shares (TMV) – TMV is interesting in that it seeks daily investment results of 300% of the inverse performance from its tracking index, the ICE U.S. Treasury 20+ Year Bond Index. The index includes fixed rate bonds that have $300 million or more outstanding. Single day trading makes TMV a much more risky investment vehicle but one that can be utilized by active investors who understand the leverage risk. This instrument works best when the Fed is raising rates and inflation is on the rise. This fund is up 121% YTD.

2022 is looking to be a busy year as many companies plan to conduct stock splits. A stock split doesn’t directly affect the market value of a company but it can create an opening for new investors to join the party. There are a few reasons why a stock may decide to split and the most obvious is that the price of the stock has gotten to a high enough point where a split would make it more affordable to the everyday investor which creates a new demand. Another reason is that a split can send a “message” telling investors that the price is rising, leading to potential investors looking to join in on the growth.

Now we will look at a few companies conducting stock splits and some of the ETFs they are included in.

Google (GOOGL) – Google is a leader in the digital world owning companies such as Google Search Engine, Android, and YouTube. Considered by Wall Street as a mega-cap stock, GOOGL has seen double-digit growth in revenue over the past ten years returning around 150% in the last five. With all of this growth and a share price of $2,300 it was only a matter of time before Google announced a 20-for-1 split going into effect on July 15, 2022. The split will bring GOOGL to around $115 a share, making it much more accessible. The three ETFs with the most exposure to GOOGL are: Vanguard Communication Services ETF (VOX) 11.64%, the Fidelity MSCI Communication Services Index ETF (FCOM) 11.56%, and the Communication Services Select Sector SPDR Fund (XLC) 10.87%.

DexCom (DXCM) – DexCom is a diabetes care company that specializes in creating glucose monitoring systems. DXCM has become a market leader for their G6 continuous glucose monitor (CGM) as well as DexCom One, an easier and cheaper version of the G6 CGM looking to make an impact in emerging markets like Eastern Europe. They have also announced the future launch of the G7 CGM, looking to be a smaller and more convenient version of the G6 CGM. DXCM has boosted revenues +25% year-over-year for March and is aiming to grow revenue by 15%-20% in 2022. With the future launch of the G7 CGM looking to boost sales as well as Wells Fargo raising DXCM to Overweight, it seemed like as good a time as ever for DXCM to announce a 4-for-1 stock split, increasing their share count from 200 million to 800 million. The split will go into place on June, 10 and will bring the price to around $75 a share. The three ETFs with the most exposure to DXCM are: First Trust Nasdaq Lux Digital Health Solutions ETF (EKG) 7.75%, the Global X Internet of Things ETF (SNSR) 4.92%, and the Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (UTRN) 4.14%.

Tesla (TSLA) – Started in the early 2000’s, Tesla has rapidly grown to become the leading supplier in electric vehicles by a large margin with a worldwide EV market share of around 21%. TSLA has been innovating the EV market by launching 16 car models as well as revolutionizing the driving experience with autopilot, software updates, power supply, and the specifications of the cars. They have been ramping up production to keep up with demand by launching their second Gigafactory in Texas aiming to create 500,000 Model Y SUVs a year and has already delivered more than 300,000 EVs in the March quarter, up +68% year-over-year. TSLA is currently trading around $715 and has announced plans for a stock split. The split amount has not yet been disclosed but is expected to be voted on around October. The three ETFs with the most exposure to TSLA are: Consumer Discretionary Select Sector SPDR Fund (XLY) 17.27%, the Vanguard Consumer Discretionary ETF (VCR) 15.19%, and the Fidelity MSCI Consumer Discretionary Index ETF (FDIS) 13.87%.

When the market is not performing at its best, many investors look to bonds for their yields but with inflation outpacing interest rates, the stock market can be a better option and dividend ETFs can provide the vehicle for a better return.

There are certain dividend paying companies that go above and beyond, gaining entry into the Dividend Aristocrat Index, a group of 65 members from the S&P 500 that have all raised their dividends for a minimum of 25 years, with some companies doing so for more than 40.

A good way to get access to these companies can be to invest in dividend ETFs which invest only in companies that pay dividends. These ETFs all have different styles in the way they select companies whether it be size, region, the industry they’re in, or their history of dividend returns, and they then compile them all into a categorized basket.

Two dividend ETFs that follow a Dividend Aristocrats Index are:

SPDR S&P Dividend ETF (SDY) – SDY tracks the S&P High Yield Dividend Aristocrats Index which requires it companies to have increased their dividend payments for at least 20 years. Up +5.30% for the past 6 months, SDY has a dividend yield of 2.3% with its top five holdings being: Exxon Mobil (XOM) 2.85%, Chevron Corp. (CVX) 2.38%, International Business Machines (IBM) 2.13%, South Jersey Industries Inc. (SJI) 1.99%, and AbbVie Inc. (ABBV) 1.96%.

ProShares S&P 500 Dividend Aristocrats ETF (NOBL) – NOBL follows the performance of the S&P 500 Dividend Aristocrats Index discussed earlier which only accepts companies with a history of at least 25 years of increased dividends. Compared to SDY, NOBL has a lower dividend yield of 1.9% but opts to make their portfolio balanced giving most of their holdings similarly equal weighting. NOBLs top five holdings are: Nucor Corp. (NUE) 2.37%, Archer Daniels Midland Co. (ADM) 2.00%, Chevron Corp. (CVX) 1.95%, AbbVie Inc. (ABBV) 1.86%, and Atmos Energy Corp. (ATO) 1.78%.

Breaking News: Inflation is on the rise… Obviously we all know this but determining when we are at peak inflation is the key for investors looking to pivot. Commodity ETFs could be a good indicator of when you can make that pivot.

One thing sector or Thematic ETFs are great at doing, is that they give you a very good snapshot of what is happening in the marketplace. While most people don’t get excited over commodity ETFs, (Corn, Grain, Wheat, etc), they can be an excellent indicator of what is taking place in the marketplace and more specifically, where we stand with regard to inflation or peak inflation. Let’s take a look at some commodity ETFs and what they can tell us.

Invesco DB Commodity Index Tracking Fund (DBC)

From the site summary, this Invesco ETF is designed for investors who want a cost-effective and convenient way to invest in commodity futures. The Index is a rules-based index composed of futures contracts on 14 of the most heavily traded and important physical commodities in the world.

What the fund told us?
Year over year the fund is up nearly 50%, 50% on boring old commodities. Yes, back when Fed Chairman James Powell was still talking about transitory inflation, this ETF was banging away on an upward ascent. The high point of the year for this fund was April 18th 2021, at $28.42, and now sits at $27.51.

While the fund was up nearly 50% year over year, the inflation creep has been happening for the last two years. This fund is up nearly 150% over the past two years. Part of the shock no doubt was covid related, but you didn’t need to be the Fed Chair to understand that inflation started hitting in early Feb of 2021.

US Commodity Index Fund (USCI)
From the prospectus, USCI is designed to be a convenient, cost-effective way for investors to access the returns of a portfolio of commodity futures contracts. USCI is listed on NYSE Arca.

What the fund told us?
Much like the DBC the fund is up nearly 50% on the year.

While commodities were the place to be the past two years, commodity ETFs are starting to see some outflows from investors. Teucrium which runs commodity agricultural ETFs is a good benchmark for what is happening in inflation and commodity ETFs. Their funds have seen outward flows much of the past 10 days. Teucrium runs the following funds CORN, CANE, SOYB, WEAT, and TAGS, which are commodity pools regulated by the Commodity Futures Trading Commission.

One Key Takeaway
These funds are trading futures contracts, so they are a bit ahead of the game, so this makes it an even more forward look at what is happening in inflation.