Choices among entertainment-only funds are limited
People who want to invest in the market but don’t want to choose individual stocks often turn to funds. There are thousands of portfolios and lots of options to pick from, but for those who want just entertainment and media stocks, choices are limited.
Two relatively pure showbiz funds are Fidelity Select Multimedia (FBMPX), an actively managed traditional open-end mutual fund holding about 60 stocks, and PowerShares Dynamic Media Portfolio (PBS), an exchange-traded fund (ETF) based on an index of 30 media companies. Investors can buy FBMPX for a minimum of $2,500. There’s no sales charge, and the expense ratio, or annual operating fee, is 0.90%. In the year ended June 30, the Fidelity fund has outperformed the PowerShares portfolio by a difference of about 8.6 percentage points.
As an ETF, PBS trades like a stock throughout the day, and investors can buy a single share (recently $15.62), though they may have to pay brokerage commissions. The expense ratio is 0.63%.
Several funds have the word “leisure” in their names but have a broad definition of leisure. One such fund holds Home Depot shares as its second-largest position. Maybe its managers think putting up drywall is entertaining.