6 ETFs To Score High From World Cup Spending Spree

With just a couple of days to go for the 2018 FIFA World Cup in Russia, the football fervor is spreading with lightning speed across the world. It is a potential trigger for sales trends in a few countries, especially for the host, and usually leads to a buying frenzy. This, in turn, will result in robust stock market gains, with a few countries or sectors scoring the highest from the tournament.   

What’s on A Roll?

The World Cup has propelled economic activities of the host country and will continue to do so over the long term. According to the tournament’s organizing committee, the soccer will have a total positive impact of nearly $31 billion on the economy and could boost Russia’s GDP growth by 1.62 trillion rubles ($26 billion) to 1.92 trillion rubles ($30.8 billion) over 10 years from 2013 through to 2023. The surge would be driven by higher construction spending, increased investment and growing tourism.

Per the latest study conducted by the McKinsey consultancy, the mega football event could generate around $15 billion of GDP in Russia, which tops the impact of similar championships in Brazil, South Africa, Germany and South Korea. However, it is second only to the result of Japan. The World Cup will also drive tourism in Moscow by 10%.

Apart from Russia, the British economy is also expected to get a boost of £1.33 billion from fans and well-wishers if England makes it through the second round of the World Cup, and of £2.72 billion if it makes it through to the finals. Pubs, restaurants, cafes, and clubs are set to benefit most with £193 million expected to be spent by consumers watching the tournament. The amount may rise to a huge £488 million if England makes it to the final match.

Being the biggest sporting event on the planet, the championship is also a money-spinner for media networks (TV, digital and social media) and advertisers, attracting billions of revenues in a month. Zenith Media projects worldwide advertising revenue to grow $2.4 billion from the month-long event. China will get the biggest boost with an additional $835 million on advertising, ahead of the United States, which will spend an additional $400 million, and host nation Russia, which will see a $64 million increase.

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