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How One ETF Picks Stocks Based On Sports Sponsorships

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Welcome to the inaugural episode of Full-Court Finance, a new podcast from Zacks Investment Research focused on the intersection of sports, business, and the stock market.

In the first ever episode of Full-Court Finance, I spoke with Nick Fullerton, the co-founder of SportsETFs LLC. SportsETFs’ first fund, the Pro Sports Sponsors ETF , tracks 66 companies that sponsor one of or all of the four major North American professional sports leagues (NFL, MLB, NBA, NHL). The California-based firm’s Pro Sports Sponsors ETF currently trades under the ticker FANZ on the Kansas-based US stock exchange Bats.

In its first fund, SportsETFs wanted to provide a broad range of companies,  while also maintaining a cohesive focus, and companies that sponsor the big four North American sports leagues helped provide exactly that. The fund is comprised of giants such as Bank of America (BAC - Free Report) , Microsoft (MSFT - Free Report) , and AT&T (T - Free Report) as well as smaller firms like Nathan’s Famous Inc. (NATH - Free Report) .

The Pro Sports Sponsors ETF provides investors exposure to consumer staples, information technology, financial firms, energy companies, utilities powers, healthcare giants, and more.

Fullerton and SportsETFs’ contention is that companies that sponsor the four major professional sports leagues are positioned well financially and in fact grow faster than the broader economy. The firm believes that when tracked together, the companies will provide healthy returns for investors. The co-founder also contends that some of these companies, such as Papa John’s (PZZA - Free Report) , can even link some of their current success directly to their sponsorships of a certain league.

Fullerton hopes sports fans consider this fund because it allows them to track and invest in companies they might be familiar with. He also wants investors who are looking for a new diversified holding to take a look at the Pro Sports Sponsors ETF.

My conversation with Fullerton flows from the genesis of the idea, to how companies were chosen and what the next big trends in sports that could impact businesses and investors might be.

But you will have to listen to the whole episode to find out more about this potentially game-changing ETF that brings big-time professional sports and the companies committed to them together.

A bit about the founders

Fullerton graduated from Stanford University in 1997 and is a registered investment advisor who was the Principal at Fullerton Advisors LLC for roughly seven years. The fund’s other co-founder, Jim Kozimor, is a two-time Emmy Award winning sports broadcaster who has covered the Olympics, the Super Bowl, the NBA Finals, the U.S. Open, and other major events for NBC Sports. Kozimor also spent 19 seasons as a broadcaster for the NBA’s Golden State Warriors, Philadelphia 76ers, Houston Rockets, and Sacramento Kings.

If you are interested in SportsETFs’ FANZ fund you can find out more about the company at sportsetfs.com.

And if you have any questions about the first episode of Full-Court Finance please feel free to shoot us an email over at podcast@zacks.com. Please also make sure to check out all of our other podcasts at zacks.com/podcast and remember to subscribe and leave a rating in iTunes.

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