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Investing in entertainment stocks

While game sales thrive, the movie industry and other companies struggle amid pandemic fallout.

Entertainment stocks can be a playful addition to any portfolio, representing the best of companies Americans use to tune in, tune out and otherwise amuse ourselves. They can be lucrative for investors, though vet your options as the continuing pandemic drags down consumer trends.

What are entertainment stocks?

Entertainment stocks are from companies that fall within the entertainment industry — a subsector of the communication services sector as defined by the Global Industry Classification Standard.
These stocks belong to companies that keep the world entertained, spanning forms of at-home and on-the-go amusement across:

  • Film
  • Music
  • Radio
  • Television
  • Video games

Film studios, broadcasting companies, event venues, cable and satellite companies, movie theaters and even bowling alleys and bounce houses all fall within the market’s entertainment sector.

How to invest in the entertainment sector

Invest in the entertainment industry by purchasing stocks or exchange-traded funds (ETFs).
Individual stocks from companies in the entertainment sector offer the opportunity for a targeted investment — you can pick and choose which businesses you want to back. They can be profitable but volatile, with price fluctuations throughout the trading day.
ETFs offer a more diversified investment opportunity, because they track collections of stocks and offer exposure to a wider swath of companies. They come with greater stability than stocks, but also expense ratios that typically range from 0.03% to 2.5%.
Whether you opt for stocks, ETFs or a combination of the two, you’ll need a brokerage account to invest:

  1. Pick a platform. Compare trading platform features and fees to find a broker that can help you reach your investment goals.
  2. Open an account. Complete applications for web-based brokerages online with basic personal information, like your residential address and Social Security number.
  3. Fund your account. Transfer funds from an external bank account to begin trading.
  4. Select your securities. Filter stocks and ETFs by sector or industry to narrow down your options.
  5. Place an order. Once you’ve found a stock or ETF to purchase, submit your order.
  6. Monitor your investments. Log in to your brokerage account to stay on top of your investments.

Top pick for investing by theme

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  • Trade $0 commission stocks & ETFs with as little as $1
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  • Theme and ETF screener

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Disclaimer: This page is not financial advice or an endorsement of digital assets, providers or services. Digital assets are volatile and risky, and past performance is no guarantee of future results. Potential regulations or policies can affect their availability and services provided. Talk with a financial professional before making a decision. Finder or the author may own cryptocurrency discussed on this page.

What stocks are in the entertainment sector?

See how the following stocks are performing, and view details like market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield.

What ETFs track the entertainment sector?

Major funds that track the entertainment sector include:

  • Global X Video Games & Esports ETF (HERO)
  • Invesco Dynamic Leisure and Entertainment ETF (PEJ)
  • Invesco Dynamic Media ETF (PBS)
  • iShares Evolved U.S. Media and Entertainment ETF (IEME)
  • VanEck Vectors Gaming ETF (BJK)
  • VanEck Vectors Video Gaming and eSports ETF (ESPO)

Why invest in the entertainment sector?

Despite the COVID-19 pandemic, many companies in the entertainment industry are thriving — especially streaming and video game platforms. The US happens to be home to one of the biggest, most prolific film industries in the world, generating a whopping $35.3 billion in revenue in 2019, according to Statista. In fact, movie ticket sales crossed the $1 billion mark in 2019 despite burgeoning competition from streaming services.
The movie industry isn’t the only subcategory of the entertainment sector with a strong performance history. Combined revenue from the global PC and mobile gaming markets for 2020 is estimated at nearly $114 billion, says Statista. Entertainment may be a consumer luxury — but it’s a profitable luxury.
Plus, entertainment stocks offer investors the opportunity to back companies they interact with every day — and there’s something to be said for investing in what you know

What unique risks does the entertainment sector face?

The coronavirus pandemic is having a debilitating effect on many sectors of the economy, with entertainment stocks no exception. While some companies and categories have found a profitable way to navigate the tenuous market conditions, appealing to the needs of consumers stuck at home, other companies are beginning to flounder — and even sink.
Many analysts are optimistic the economy will rebound — and with it, consumer spending habits. But there’s no guaranteed timeline for this recovery, and some companies in the entertainment industry may never bounce back.
It’s also hard to gauge the pandemic’s impact on how we prefer to be entertained. Movie theaters are crippled by the pandemic, leaving streaming services to fight tooth and nail for a slice of the market. It may be many years before we fully grasp the long-term effects of COVID-19 on the entertainment industry, or before movie theaters are packed once again.

Compare trading platforms

To invest, you’ll need a brokerage account. Explore your options below.

1 - 12 of 12
Product USFST Finder Score Available asset types Stock trade fee Minimum deposit Key features Offer
OPTO logo
Finder score
Stocks, ETFs
$0
$0
  • Discover emerging trends
  • Invest by theme
  • Design your own stock index
Earn up to $300 when you deposit between $500–$3,000
SoFi Wealth Management logo
Finder score
Stocks, Options, Mutual funds, ETFs, Alternatives
$0
$0
  • Invest, bank, borrow and more
  • SoFi Plus benefits
  • Taxable and retirement accounts
Get up to $1,000 in stock when you fund a new account. T&C apply.
Tastytrade logo
Finder score
Stocks, Options, ETFs, Cryptocurrency, Futures, Treasury Bills
$0
$0
  • Real-time market insights
  • Live educational shows
  • Professional trading tools
Get $50-$5,000 when you open and fund an account with $2,000 to $1,000,000+
Robinhood logo
Finder score
Stocks, Options, ETFs, Cryptocurrency, Futures
$0
$0
  • Get up to 3% in IRA boosts
  • Get 4% APY on cash with Gold
  • Active trading tools
Get a free stock when you successfully sign up and link your bank account.
Zacks Trade logo
Finder score
Stocks, Bonds, Mutual funds, ETFs, CDs
$0.01
$250
  • Low margin rates
  • Customizable trading platforms
  • Professional trading tools
Get up to $500 when you open and fund an account. Terms apply.
Interactive Brokers logo
Finder score
Stocks, Bonds, Options, Mutual funds, ETFs, Cryptocurrency, Futures, Forex, Treasury Bills
$0
$0
  • Active and robo investing
  • Global market access
  • Professional trading tools
Public logo
Finder score
Stocks, Bonds, Options, ETFs, Cryptocurrency, Alternatives, Treasury Bills, High-yield cash account
$0
$0
  • Lock in a 6.8% bond account yield
  • Earn rebates on options trades
  • Earn 4.1% APY on your cash
Get up to $10,000 and transfer fees covered when you move your portfolio to Public.
Acorns logo
Finder score
Stocks, ETFs
$0
$0
  • Invest spare change
  • Get a 3% IRA contribution match
  • Invest and bank
Get a $20 bonus when you set up an account and make your first recurring investment (min. $5).
Stash Investments LLC logo
Finder score
Stocks, ETFs
$0
$0
  • Invest and bank
  • Active and robo investing
  • Invest spare change
Get $10 when you sign up and deposit $5.
Wealthfront logo
Finder score
Stocks, ETFs
$0
$500
  • Earn 4% APY on your cash
  • Active and robo investing
  • Automated bond investing
Get a $50 bonus when you sign up and fund a taxable automated investing account with at least $500.
JPMorgan logo
Finder score
Mutual funds, ETFs
$0
$25,000
  • Personalized financial planning
  • Get an expert-built portfolio
  • Ongoing advice
M1 Finance logo
Finder score
Stocks, ETFs, Cryptocurrency
$0
$100
  • Earn 4% APY on your cash
  • Active investing with automated tools
  • Low margin rates
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What is the Finder Score?

The Finder Score crunches 147 key metrics we collected directly from 18+ brokers and assessed each provider’s performance based on nine different categories, weighing each metric based on the expertise and insights of Finder’s investment experts. We then scored and ranked each provider to determine the best brokerage accounts.

We update our best picks as products change, disappear or emerge in the market. We also regularly review and revise our selections to ensure our best provider lists reflect the most competitive available.

Read the full Finder Score breakdown

Bottom line

The entertainment sector has performed well in the past and gives investors a chance to back companies most of us use every day. But time will tell how the coronavirus pandemic continues shaping the way we amuse ourselves.
Explore your brokerage account options to find the account best suited to meet your investment goals.

Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.

Finder is not an advisor or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.

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Editor

Shannon Terrell is a lead writer and spokesperson at NerdWallet and a former editor at Finder, specializing in personal finance. Her writing and analysis on investing and banking has been featured in Bloomberg, Global News, Yahoo Finance, GoBankingRates and Black Enterprise. She holds a bachelor’s degree in communications and English literature from the University of Toronto Mississauga. See full bio

's expertise
has written 156 Finder guides across topics including:
  • Share trading
  • Robo-advisors
  • Merchant services

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