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Disney ETFs Set to Surge With Upcoming Blockbusters

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Recent performances of "Inside Out 2" and "Deadpool and Wolverine," each surpassing the $1 billion revenue mark, not only underscore the success of Disney’s (DIS - Free Report) Animation Studios or Pixar and Marvel Studios but also highlights its appeal, painting a favorable outlook for the media giant.

In 2019, Disney acquired the film and TV assets held by 21st Century Fox, bringing high-grossing and notable franchises like Planet of the Apes, James Cameron’s Avatar, film and distribution rights of Marvel content like X-Men and Fantastic Four, among others, under Disney’s film portfolio.

Deadpool & Wolverine Deliver Blockbuster Brilliance

Disney and Marvel’s "Deadpool & Wolverine," welcomed by both critics and fans, became just the second R-rated film to surpass $1 billion at the global box office just three weeks into its release this weekend (as of Aug 11), according to CNBC. The movie is on its way to becoming the highest-grossing R-rated film of all time.

Following a series of disappointing performances from Disney’s usually reliable franchises, blockbuster successes of both Inside Out 2 and Deadpool and Wolverine paint an optimistic picture for Disney as the media giant looks to recapture its box office glory.

Disney's Next Lineup Poised for Record-Breaking Success

Disney's upcoming movie lineup is anticipated to be major box office hits, making investments in the company highly appealing at this time. With shares of the company down by about 30% since early April, this may be an excellent time to buy on the dip.

Per CNBC, box office analysts forecast that Disney’s upcoming "Moana 2," set to premiere over the Thanksgiving holiday, could also join the billion-dollar club. The movie is set to repeat the success of “Moana,” the most streamed film of 2023.

In Disney’s recent biannual D23 Expo, the company unveiled sequels to some of its highest-grossing animated films like “Toy Story 5”, “Zootopia 2”, “Frozen III” and “Incredibles 3.” The Toy Story series has earned $3.2 billion globally, with the two Frozen films having surpassed $2.7 billion and the Incredibles movies have brought in $1.8 billion. “Zootopia,” released in 2016, was also generated $1 billion globally.

Disney also announced a lineup of new Marvel Cinematic Universe titles including “The Fantastic 4: First Steps”, “Blade”, “Avengers: Doomsday” and “Avengers: Secret Wars”. The Marvel Cinematic Universe, the highest-grossing film franchise of all time, has surpassed $30 billion. According to BBC, Disney announced the return of fan-favorite Robert Downey Jr after five years, which should significantly boost the likelihood of the upcoming Avengers films becoming huge successes and crossing the $1 billion mark.

With over $10 billion in ticket sales since "A New Hope" premiered in 1977, Star Wars boasts a strong track record as well. At the D23 Expo, footage was also presented for “The Mandalorian and Grogu,” the first Star Wars film to hit the big screen since 2019.

According to BBC, the title of the third installment of Avatar was revealed at a major Disney fan event. The Avatar franchise has been one of the most successful franchises, with two films in the franchise grossing over $5.2 billion.

ETFs to Consider

Investors can look into the following funds with exposure to Disney, to capitalize on the media giant's exciting film lineup.

First Trust S-Network Streaming and Gaming ETF (BNGE - Free Report)

First Trust S-Network Streaming and Gaming ETF has an exposure of 4.36% in DIS. The fund has gained 7.29% over the past three months and 9.84% over the past year.

ALPS Global Travel Beneficiaries ETF (JRNY - Free Report)

ALPS Global Travel Beneficiaries ETF has an exposure of 4.24% in DIS. The fund has lost 4.02% over the past three months and 3.72% over the past year.

Vanguard Communication Services ETF (VOX - Free Report)

Vanguard Communication Services ETF has an exposure of 4.18% in DIS. The fund has gained 8.67% over the past three months and 22.68% over the past year.

iShares Global Comm Services ETF (IXP - Free Report)

iShares Global Comm Services ETF has an exposure of 3.89% in DIS. The fund has gained 7.4% over the past three months and 22.45% over the past year.

Communication Services Select Sector SPDR Fund (XLC - Free Report)

Communication Services Select Sector SPDR Fund has an exposure of 3.85% in DIS. The fund has gained 10.50% over the past three months and 26.11% over the past year.

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