Several exchange-traded funds (ETFs) hold baskets of equities for companies in the sports, leisure and entertainment industries. In general, "entertainment" is often considered a blanket term that refers to any types of activities or services that provide rest, relaxation and enjoyment. These industries are included in the consumer cyclicals segment because of their highly cyclical nature. Typically, during periods of economic success and health, entertainment industries thrive as consumers indulge in services and activities that afford them some entertainment value. Conversely, during times of economic struggle or downward trends, companies that provide such services often struggle.

Companies and goods that may fall under the entertainment umbrella include sporting equipment, stores that offer these goods or companies that provide sporting events or services, along with fitness equipment and gyms. Movies, music, concert halls and theaters are also included. Another large part of entertainment sector is hospitality and tourism, which includes hotels, motels and similar establishments.

With the economic burden from 2008 and 2009 starting to lessen, 2016 could be a landmark year for the entertainment sector. Investors looking to capitalize on this would be served well by looking at ETFs that serve the entertainment segment.

Invesco Dynamic Leisure & Entertainment ETF

Issued in 2005 by Invesco, the Invesco Dynamic Leisure & Entertainment ETF (NYSEARCA: PEJ) has in excess of $220 million in assets under management (AUM). The goal of this fund’s manager is to pick stocks that are and that will continue to be successful instead of focusing on providing investors with a basket of market capitalization-weighted equities that reflect the entertainment industry. The finer aspects of the stock selection process are not completely transparent. However, the core of the process is based on four main factors: the strength of each stock's fundamentals, if the stock is relevant to the times, the stock's valuation metrics and the stock's risk level. This ETF generally holds around 30 equities that include a variety of companies in or related to the entertainment sector. In terms of firm size, PEJ leans away substantially from large-cap stocks. Ultimately, this fund is relatively expensive and more suitable for investors who are comfortable with the cost. It is also best suited for investors looking for exposure to various elements of the sports, entertainment and leisure industries.

The expense ratio for this fund is approximately 0.63%. The dividend yield is 0.63%. The five-year annualized return for PEJ is approximately 15.9%. Morningstar gives the fund an above-average level of risk and an average level of return. Thus, this fund is best-suited for investors who have high risk tolerances. Top holdings for this fund include Expedia, Delta Air Lines, Disney, Starbucks and Carnival.

Invesco Dynamic Media Portfolio

Also issued by Invesco in 2005, the Dynamic Media Portfolio ETF (NYSEARCA: PBS) tracks the Dynamic Media Intellidex Index, which consists of U.S. media industry stocks. This index utilizes multiple factors for stock selection and tiered equal weighting. PBS is not a pure play, but it is currently the only option available for investors looking to gain exposure to media stocks through an ETF. PBS uses a number of multifactor screens to select stocks in its basket instead of providing cap-weighted exposure to media and publishing firms. This fund outlines the media industry broadly; stocks in the information technology, software and retail industries are also included in its pool. The fund has a substantial fee, and its tracking hasn't always been smooth. However, for investors looking for the benefits of an ETF with exposure to the media industry, PEJ is the only option. Furthermore, the fund is best-suited for moderate and skilled investors who can trade in and out of the fund without extensive additional costs.

PBS’s total AUM sits at over $130 million. The expense ratio for the fund is 0.62%. The dividend yield is 0.79%. The fund's five-year annualized return is approximately 15.2%. Top holdings for the company include Facebook, Disney, Sirius XM and Twenty-First Century Fox.

Market Vectors Gaming ETF

Issued in 2008 by Van Eck, the Market Vectors Gaming ETF (NYSEARCA: BJK) is an excellent option for investors looking for exposure to a narrow segment of the entertainment industry that includes casinos and other gaming corporations. BJK tracks the Market Vectors Global Gaming Index. The underlying index for this fund is market capitalization-weighted and closely follows a host of global corporations that generate or earn a minimum of 50% of their overall revenues from gaming and similar activities. This fund is suited for investors looking for global exposure. It is better-suited for investors looking for global casino and gaming exposure. In terms of geography, the Market Vectors Gaming ETF is fairly representative. The risk of this fund being pulled or closing is rather low, as BJK’s total assets come in near $30 million. Morningstar gives the fund an overall high risk level and a moderate level of return.

The expense ratio for this fund is 0.65%. The dividend yield is 5.83%. The fund’s five-year annualized return is approximately 3.6%. Companies comprising this fund are predominantly from the U.S. with Hong Kong a close second. Australian companies are also represented in the fund. Top holdings for BJK include Las Vegas Sands Corporation, Sands China, Galaxy Entertainment Group and Wynn Resorts.

Consumer Discret Sel Sect SPDR ETF

Issued in 1998 by State Street Global Advisors, the Consumer Discret Sel Sect SPDR ETF (NYSEARCA: XLY) tracks the S&P Consumer Discretionary Select Sector Index, which is market cap-weighted and composed of discretionary stocks that are pulled from the S&P 500. XLY is ideal for investors seeking highly liquid portfolios of large-cap consumer discretionary stocks. Aside from liquidity, analysts favor XLY for its low expense ratio and a daily trading volume that dwarfs competing ETFs. The equities composing this fund are representative of the cyclicals segment in its entirety but tend to be concentrated into the fund's top holdings. Morningstar gives the fund an overall low risk level and an above-average return rating.

Total assets for this fund exceed $10 million. The fund's expense ratio is 0.14%. The dividend yield is 1.33%. XLY's five-year annualized return is approximately 19.3%. Top holdings include Amazon, Disney, Home Depot and McDonald's.