By Paul R. La Monica
Spain? France? Argentina going back-to-back? Which country will win is the question that soccer (or football/futbol for our international readers) fans around the globe are asking as the World Cup kicks off in North America on Thursday.
But investors can be winners too, through exchange-traded funds and individual stocks that could benefit from the tournament.
Tom Essaye, author of The Sevens Report market newsletter, noted on Thursday that the World Cup "could potentially deliver short-term outperformance" for the economies of the host nations of the U.S., Canada and Mexico.
The iShares MSCI Mexico ETF and iShares MSCI Canada ETF could be good bets on a macro lift for these host countries, Essaye said. Essaye also noted that stocks based in the countries of World Cup winners may be a winning trade too.
According to data from economists at William Blair, the stock markets for World Cup champions going back to 1974 have outperformed global markets by an average of 5.5% in the month following the World Cup final.
With that in mind, Essaye said investors should consider the iShares MSCI Spain ETF, since Spain is widely considered to be the favorite to take home the trophy, according to prediction markets. France and England are also popular picks with bettors. So investors may want to look at the iShares MSCI France ETF and iShares MSCI United Kingdom ETF as well.
Essaye added that there could be "ripple effects on particular corners of the stock market." The most obvious beneficiaries are sports betting/gambling companies. It's true that the gains could be short-lived, as Barron's noted in last week's cover story that demand may be peaking for companies like DraftKings and FanDuel owner Flutter Entertainment. Still, they could be savvy trading opportunities.
Essaye pointed to the Roundhill Sports Betting & iGaming ETF, which owns DraftKings and Flutter as top 10 holdings as well as several casino companies. The fund is down 4% this year but has gained momentum as of late, with a nearly 10% over the past month. The fund is passively managed, tracking Morningstar's Sports Betting & iGaming Select Index.
There's another new fund to consider as well that's actively managed: the Corgi Sports Betting & Gambling ETF. But Essaye noted that it is tiny, with just $2 million in assets under management since it debuted in early May. Flutter and DraftKings are the biggest and third-largest holdings, with casino owners Las Vegas Sands, MGM Resorts and Red Rock Resorts rounding out the top five. The ETF is up 14% since it launched.
Investors don't have to bet (so to speak) only on gambling companies though. They might be able to score a goal by investing in consumer stocks that could get a lift from the World Cup, such as hotel owners, restaurants, food and beverage makers, transportation companies and media firms.
Essaye's pick? The Invesco Leisure & Entertainment ETF. Hilton, Marriott and Airbnb are big holdings, as are Expedia and Tripadvisor. Starbucks is also one of the 10 largest positions in the passively managed fund, which tracks the Dynamic Leisure & Entertainment Intellidex Index. The ETF is up 4% this year but has rallied 8% in the past month.
The Invesco fund also owns shares of Manchester United, the popular British soccer team that has several players on World Cup rosters. Manchester United is a big holding in another new sports fund that Essaye didn't mention: the Gabelli Opportunities in Live & Sports ETF.
The Gabelli ETF, which trades under the ticker symbol of GOLS, is up 4% in the past month, outperforming the S&P 500. The ETF owns shares of German soccer team Borussia Dortmund too. But it may also be getting a lift from basketball.
The top holding in GOLS is Madison Square Garden Sports, a Barron's stock pick and the owner of the New York Knicks, who will clinch their first NBA title in 53 years if they beat the San Antonio Spurs on Saturday. So this Gabelli ETF could get a double boost, a slam dunk from a Knicks win with an assist from the World Cup.
Write to Paul R. La Monica at paul.lamonica@barrons.com
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(END) Dow Jones Newswires
June 11, 2026 14:39 ET (18:39 GMT)
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