HOTL

Kelly Hotel & Lodging Sector ETF

Why Invest in HOTL ETF

The Hotel and Lodging Sector acts as an effective economic barometer as it uniquely captures both leisure and business spending across various income levels. The HOTL sector is seeing favorable market conditions as business spending is set to increase over the next several years.

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Investment Case

  • Targeted Exposure to Travel & Leisure: We believe the hotel and lodging sector acts as an effective economic barometer as it uniquely captures both leisure and business spending across various income levels, while other travel sectors like airlines and cruise lines, can represent only a narrow segment of economic activity. The lodging ecosystem includes many specialized participants, and HOTL is a concentrated portfolio that seeks to provide access to leading global management teams in the hotel and lodging sector. Hotels are an integral part of the global travel and tourism industry as they are part infrastructure, part business, part consumer, and part necessity.
  • Early Stages of Recovery / Less Supply Risk: The HOTL sector is seeing favorable market conditions as business travel spending is set to increase over the next several years. Lodging demand upturns usually have two phases, first is recovering what was lost from the previous downturn, and then demand tends to reach new cyclical all-time highs. The supply of new rooms will probably remain muted for a few years, particularly in the upscale and luxury segments, where it can take several years between breaking ground and completion. This pattern indicates the potential for real secular growth for the lodging sector.
  • High Growth Potential: HOTL enables investors to access high growth potential through companies that in our opinion remain key pillars of economic growth, development, and infrastructure and are at the crossroads of longer-term positive secular tailwinds. Investors and individuals alike are increasingly interested in companies that provide experiences over companies that provide material goods.
  • Tool for Diversification: HOTL offers diversification due to little overlap with traditional indices and may be a cost effective way for investors to diversify their holdings. HOTL can serve as a complement to not only traditional real estate, but also growth strategies as lodging companies may offer similar benefits to growth equities. The HOTL sector also offers portfolio diversification with a low correlation to other equities and bonds.
  • Cost Effective: In a single trade, HOTL enables investors to access that we believe are positioned to benefit from transformative forces that are reshaping the travel and lodging industry. HOTL ETF is a diversified across dozens of Lodging companies with desirable locations in high barrier to entry markets. HOTL can be a lower cost alternative to non-traded REITs, mutual funds, and private equity funds in an Exchange Traded Fund (ETF).

Fund Links

Fact Sheet
Prospectus
Summary Prospectus
SAI
Semi-Annual Report
Annual Report
Schedule of Investments – May 31
Schedule of Investments – November 30
Tax Document

Fund Details

Fund Inception 1/12/2022
Ticker HOTL
Net Assets TBD
Shares Outstanding TBD
Primary Exchange NYSE Arca
CUSIP 48817R 409
ISIN US48817R4092
Fund Type Indexed Equity ETF
Expense Ratio 0.78%
Number of Holdings TBD
Dividend Frequency Quarterly

Data as of TBD

Fund Overview

  • Designed to capture the entire hotel & lodging industry.
  • The lodging ecosystem includes many specialized players and HOTL offers exposure to those companies focusing on hotel and lodging management and operations, lodging platform services, timeshare properties and real estate throughout the developed world.
  • Hotel & Lodging Sector ETF seeks to provide total return by investing in a passively managed, concentrated portfolio of companies
  • Targets companies in the US and developed markets that specialize in the:
    • Hotel & Lodging Services Sub-Sector: Includes companies that specialize in providing hotel and lodging management services, operational services, or provide franchising of: hotel, motel, lodging, residential, and/or timeshare properties including lodging platform services (e.g., global marketplaces for private accommodations including online marketplaces for discovering and booking private or shared accommodations).
    • Hotel & Lodging Operations Sub-Sector: Includes companies that own or lease hotels, motels, lodges, resorts, timeshare properties, and/or real estate.
  • Companies are initially identified by industry and sector and are then further reviewed based on operations related to hotel and lodging activities.

Fund Prices

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Performance

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The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.

Cumulative return is the aggregate amount that an investment has gained or lost over time. Annualized return is the average return gained or lost by an investment each year over a given time period. NAVs are calculated using prices as of 4:00 PM Eastern Time.

 

TOP 10 HOLDINGS

Download Holdings    Full Holdings
PERCENTAGE OF NET ASSETS NAME TICKER IDENTIFIER SHARES HELD MARKET VALUE

Data as of TBD

Holdings are subject to change

 

Distributions (as of 03/22/2023)

Month Ex Date Record Date Pay Date Dividend Distribution Type
March 3/24/2022 3/25/2022 3/28/2022 - Ordinary Income
June 6/24/2022 6/27/2022 6/28/2022 0.02954120 Ordinary Income
September 9/22/2022 9/23/2022 9/26/2022 - Ordinary Income
December 12/22/2022 12/23/2022 12/27/2022 0.08044000 Ordinary Income
March 3/23/2023 3/24/2023 3/27/2023 0.01765760 Ordinary Income
June 6/22/2023 6/23/2023 6/26/2023 - Ordinary Income
September 9/21/2023 9/22/2023 9/25/2023 - Ordinary Income
December 12/21/2023 12/22/2023 12/26/2023 - Ordinary Income
December 12/21/2023 12/22/2023 12/26/2023 - Capital Gains

Premium/Discount (as of TBD)

NAV Closing Price Premium/Discount
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How to Buy HOTL

FAQs

HOTL launched on 01/13/2022.
HOTL is currently available on a number of brokerage platforms. If you work with a financial planner, availability will depend on whether the HOTL ETF is available by the adviser’s platform. Talk to your financial planner about adding HOTL, or any other Kelly ETF, to your portfolio as they can be easy to use, low cost and tax efficient way to invest money.
0.78%
On the NYSE Arca Exchange
Strategic Hotel & Lodging Sector Index is maintained by Strategic Indexes, LLC. Strategic Indexes is affiliated with Kelly ETFs, however, it keeps certain activities separate in order to preserve the independence and objectivity of their respective activities. The index is calculated by Moorgate Benchmarks Ltd. For more information on the index, please visit the index website at Kelly Intelligence.
The lodging ecosystem includes many specialized players and HOTL offers exposure to those companies focusing on hotel and lodging management and operations, lodging platform services, timeshare properties and real estate throughout the developed world.

Limited Operating History Risk. The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision.

Hotel and Lodging Industry Risk Companies in the hotels, resorts sub-industry may be affected by unique supply and demand factors that do not apply to other sub-industries. Weak economic conditions in some parts of the world, changes in oil prices and currency values, political instability in some areas, and the uncertainty over how long any of these conditions could continue may have a negative impact on the lodging industry. As a result of such current economic conditions and uncertainty caused by the COVID-19 pandemic, the lodging industry may continue to experience weakened demand for occupancy in some markets The hotels, restaurants & leisure industry is highly competitive and relies heavily on consumer spending for success. The prices of securities of companies in the industry may fluctuate widely due to general economic conditions, consumer spending and the availability of disposable income, changing consumer tastes and preferences and consumer demographics, in addition may be affected by the availability and expense of liability insurance. Legislative or regulatory changes and increased government supervision.

REIT Investment Risk. REITs may have limited financial resources, may trade less frequently and in limited volume, and may be more volatile than other securities. In addition, to the extent the Fund holds interests in REITs, it is expected that investors in the Fund will bear two layers of asset-based management fees and expenses (directly at the Fund level and indirectly at the REIT level).

Foreign Securities Risk. Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities. For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability.

 

Investing involves risk including possible loss of principal.

Before investing carefully consider a funds investment objective, risks, charges, and expenses contained in the prospectus available at KELLY ETFs. Read carefully before investing.

Distributor: Foreside Fund Services, LLC.