A wide range of companies are profiting from the economic revival. As already revealed, the tourism sector is well out in front. Not only have the end of the coronavirus pandemic and fuller wallets thanks to pay increases given wings to the travel bug, but there is also a little more loose change for a hot drink or burger every now and then, which the renowned coffee shop chain Starbucks and KFC owner Yum! Brands are happy to provide. The after-work beer is also returning to popularity with rising incomes and greater confidence in the economy, something which is causing the tills to ring again for Wetherspoon, the British pub chain that also owns some hotels. On the subject of hotels, leading global names such as Hilton and Marriott are enjoying higher reservations in line with the recovery. Both companies managed to exceed Wall Street expectations for sales and profit estimates in the second quarter and also raised their outlooks for the year as a whole. The same was true of Booking Holding, the operator of online travel portals.
The economic rebound is also causing shares in the corresponding companies to soar in value. The share price of Booking Holdings climbed by more than half in 2023 and has just reached an all-time high. Hotel chain Marriott achieved a remarkable increase of slightly more than one third, likewise setting a new record recently. Stock of budget airline Ryanair similarly grew by a little over 30%. Even the share price of Hungarian Wizz Air rose by a quarter in the wake of operational successes. Not only did the airline post a new passenger record last year, but the group also flew back into profit. It would truly be a mammoth task for investors to keep an eye on all the shares that gain from an improvement in the economy. That is something investors do not even have to consider, though, thanks to the solution by the name of the Swissquote Recovery Index. The actively managed barometer is currently made up of 32 components, including all the companies mentioned in the text so far.
On a sector view, the tone of the Swissquote Recovery Index is set by the aviation industry. This sector currently contains eleven companies of the barometer which together add up to one third of the index weighting. If cruise providers, hotels and booking platforms are added, the tourism sector accounts for almost half the benchmark. The absolute heavyweight, however, is Madison Square Garden Sports from the entertainment industry. This is a professional sports company which owns teams such as the New York Knicks in the National Basketball Association (NBA) and the Rangers of the National Hockey League (NHL). The strategy barometer is also broadly positioned in the entertainment sector. The index includes, for instance, leisure and theme park operator SeaWorld Parks & Entertainment, film exhibitor Cinemark Holdings and Dave & Buster’s, an owner of video game arcades and bowling alleys. Strayer Education is the stock with the highest weighting at 6.2%. The company specialises in educational services and also owns its own private university.
Leonteq’s tracker on the diversified Swissquote Recovery Index offers investors convenient and low-cost access to a large number of international companies that profit from an economic upturn. The active approach ensures that the composition can always be adjusted to the latest developments on the market. To that end the index is reviewed quarterly by the experts and adjusted where necessary. The costs incurred for this come to a moderate 0.85% p.a. So far the strategy has paid off: in the current year the certificate on the Swissquote Recovery Index has climbed more than 11%, while the SMI has posted a rise of only around 3%.
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