As the new year begins we are always in the mood for deciding our resolutions and the first one to always pop in our minds is getting fit. This year with Oval we decided to help to make it just a little bit easier and more satisfying for sure!
As we like to say in Oval, good habits pay off, and this time we wanted to surprise you with our very own index that tracks the sports industry, Match Point. Given the current scenario we live in today, we picked companies that have been helped by the current pandemic as you could also use them to sweat indoors. Shoes, apparel, media and equipment companies are all represented in the index that has performed with a growth of 160% over the last 2 years.
Set up your investment to make it even more effective to reach your financial and personal wellbeing
With Oval 7.0 we redefined the way we think about investing with Smart Rules linked directly to your investment plan. If you are interested in Match Point, we want to explain to you how to link our Fitness Smart Rule to the investment. This way let's say you are setting aside your target amount every 10,000 steps. If you start 2021 on the right foot, you can aim to reach your daily fitness goal and invest your target amount directly into Match Point.
How? Discover more in the Invest section of the app, and after adding your initial investment set the Smart Rule up on the top. Choose to add a Smart Rule and select Fitness. You can then set up your Rule by selecting the steps or Km you want to take and the amount to set aside. This way you can start the year by burning calories and reaching your financial goals.
Which companies can you find in the index?
The index is not full equity but also has a percentage of weight in corporate bonds, reducing the risk exposure. Usually, a 60% equity and 40% bond index is lower risk as the volatility of the equity market is balanced with safer debt returns. 60% of the index is composed of:
Shoes: if your passion is running you are probably devoted to one of these brands for your choice of shoes. Nike, Adidas and Puma have all grown from shoe companies to international power brands that represent everything about sports. If you want to know more about them, Shoe Dog, the book on the story of the Nike founder will give you an insight into this crazy competitive market where only a few top brands manage to make it, and make it big.
Apparel: since sportswear became fashionable not just to use in the yoga class but also on the street, a number of brands have shown up in the space but none are as recognizable as Under Armour and Lululemon. Made of Lycra, the clothes are meant to keep you fresh as you sweat but also make your curves always look great!
Entertainment: you can sweat on the road or in the comfort of your home where media companies have made it their business to show all professional sports or broadcast games to make you feel like a pro sitting on the couch.
Equipment: the new trend in sports is surely equipment. It used to be a specialty and expensive but these companies have made equipment ready for consumers. Peloton, which since its IPO in 2019 has seen a few years of sensational growth and many other companies like Nautilus, Yeti and MIPS followed with specific equipment tailored for the indoors and outdoors.
Who is this product for?
We have chosen this product to be moderate risk so that it is available for everyone. It tracks an index of sports companies so for those passionate about this industry it can be the right long term investment for you.
This ETN is designed for retail investors with moderate experience of financial markets. They have a medium term investment horizon and are looking for an investment opportunity that reflects an expectation that the underlying will increase in value over time and are able to bear a total loss of the amount invested.
We hope you enjoy this new investment product and that it can encourage you to stick to investment and fitness goals in the long term. Keep moving the right way with Oval and let your good habits pay off!
Oval does not provide investment advice and individual investors should make their own decisions. Seek the advice of a financial consultant if you are not sure about your investment. Your capital is at risk and the value of investments can go up as well as down and you may receive back less than your original investment: you should not invest money that you can’t afford to lose.