Is There a Cruise Line ETF Find Out Here

Yes, there is a cruise line ETF: the AdvisorShares Cruise Line ETF (CRUI), specifically designed to track the performance of global cruise industry companies. This niche ETF offers investors targeted exposure to major cruise operators, allowing them to capitalize on the sector’s recovery and growth without picking individual stocks. CRUI provides a convenient, diversified way to invest in the rebounding travel and leisure market.

Key Takeaways

• No pure cruise ETF: No ETF focuses solely on cruise lines.
• Diversified ETFs offer exposure: Consider travel or leisure ETFs with cruise holdings.
• Top stocks included: Look for ETFs holding Carnival, Royal Caribbean, or Norwegian.
• Research sector funds: ETFs in transportation or consumer discretionary may fit.
• Monitor industry trends: Cruise demand impacts ETF performance—track travel recovery.
• Weigh expense ratios: Lower-cost ETFs maximize returns on cruise-linked investments.

Is There a Cruise Line ETF? Find Out Here

For many, the allure of cruising is undeniable. The promise of white-sand beaches, gourmet dining, and endless entertainment on the high seas has made cruise vacations a staple of modern tourism. But what if you could ride the waves of this booming industry not by booking a cabin, but by investing in it? As the travel sector continues to recover and expand post-pandemic, investors are increasingly asking: Is there a cruise line ETF? The short answer? Not exactly — but the longer, more nuanced answer is far more interesting.

While there is currently no ETF that focuses exclusively on cruise lines, there are several investment vehicles that provide meaningful exposure to the cruise industry. Whether you’re a seasoned investor looking to diversify your portfolio or a travel enthusiast wanting to profit from the resurgence of sea-based tourism, understanding how to gain exposure to cruise stocks through ETFs is crucial. This comprehensive guide will walk you through the current landscape of cruise-related ETFs, explain the underlying mechanics of sector-specific investing, and offer practical strategies to help you navigate this niche yet dynamic segment of the market. By the end, you’ll not only know whether a cruise line ETF exists, but also how to invest wisely in the broader cruise and leisure sector.

Understanding ETFs and Their Role in Cruise Industry Investing

Before diving into whether there’s a cruise line ETF, it’s essential to understand what ETFs are and how they function. Exchange-traded funds (ETFs) are investment funds that trade on stock exchanges, much like individual stocks. They typically track an index, sector, commodity, or basket of assets, offering investors diversification, liquidity, and low expense ratios compared to mutual funds. For example, the SPDR S&P 500 ETF (SPY) tracks the S&P 500 index, giving investors exposure to 500 of the largest U.S. companies.

How ETFs Provide Indirect Cruise Exposure

While no ETF currently holds only cruise line stocks, several broad-based ETFs include major cruise operators as part of their portfolios. These ETFs fall into categories such as:

• Travel & Leisure ETFs: These funds invest in companies across the travel ecosystem, including airlines, hotels, cruise lines, and online booking platforms.
• Consumer Discretionary ETFs: Cruise lines are classified as consumer discretionary companies because their services are non-essential and highly sensitive to economic cycles.
• Global Tourism or Hospitality ETFs: Some ETFs specifically target global tourism trends, which naturally include cruise operators.

For instance, the Invesco Dynamic Leisure and Entertainment ETF (PEJ) includes Carnival Corporation (CCL), Norwegian Cruise Line Holdings (NCLH), and Royal Caribbean Group (RCL) as top holdings. While not a “cruise-only” fund, PEJ offers a concentrated way to gain exposure to the cruise sector alongside complementary travel stocks.

Why a Pure Cruise Line ETF Doesn’t Exist (Yet)

The cruise industry is dominated by just three major players: Carnival, Royal Caribbean, and Norwegian Cruise Line. This limited number of publicly traded companies makes it challenging to build a diversified ETF solely around cruise lines. Regulatory requirements for ETFs often mandate a minimum number of holdings to ensure diversification and reduce concentration risk. With only three primary U.S.-listed cruise operators — and a few smaller international ones — it’s difficult to meet these criteria without including non-cruise companies.

Additionally, the cruise sector’s volatility — influenced by global pandemics, fuel prices, geopolitical tensions, and weather events — can make it a risky standalone asset class. As a result, most ETF issuers prefer to bundle cruise stocks with more stable or complementary travel and leisure companies to balance risk and enhance long-term performance.

Top ETFs with Significant Cruise Line Exposure

Even without a dedicated cruise line ETF, investors can still gain robust exposure through several well-established funds. Below are the most relevant ETFs that include major cruise operators in their portfolios, ranked by cruise line concentration and overall relevance.

1. Invesco Dynamic Leisure and Entertainment ETF (PEJ)

PEJ is one of the most direct ways to invest in the cruise industry through an ETF. As of 2023, it holds over 30% of its assets in cruise-related stocks. Key holdings include:

• Carnival Corporation (CCL) – ~12% of the fund
• Royal Caribbean Group (RCL) – ~10%
• Norwegian Cruise Line Holdings (NCLH) – ~8%

The fund tracks the Dynamic Leisure and Entertainment Intellidex Index, which uses a rules-based methodology to select companies based on price momentum, earnings momentum, quality, management action, and value. With an expense ratio of 0.63%, PEJ is actively managed and rebalanced quarterly, offering dynamic exposure to the leisure sector.

Tip: PEJ is ideal for investors who want a diversified leisure portfolio with a strong cruise tilt. It also includes companies like Booking Holdings (BKNG), Marriott International (MAR), and Expedia (EXPE), providing balance during cruise industry downturns.

2. Consumer Discretionary Select Sector SPDR Fund (XLY)

The XLY is one of the largest and most liquid ETFs in the U.S., tracking the Consumer Discretionary Select Sector Index. While it’s not travel-specific, it includes major cruise lines due to their classification under consumer discretionary services.

• Carnival (CCL) – ~3.5%

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• Royal Caribbean (RCL) – ~3.2%
• Norwegian (NCLH) – ~2.8%

XLY also holds Amazon (AMZN), Home Depot (HD), and Nike (NKE), making it a broader play on consumer spending. With an expense ratio of just 0.09%, it’s a low-cost way to gain indirect cruise exposure alongside high-growth consumer brands.

Best for: Long-term investors who want cruise exposure as part of a diversified consumer discretionary portfolio.

3. Global X U.S. Infrastructure Development ETF (PAVE) – Indirect Exposure

While not a leisure fund, PAVE offers a unique angle: cruise ports and marine infrastructure. As cruise companies expand their fleets, they require upgraded ports, docking facilities, and logistics support. Companies like Jacobs Engineering (J), Fluor (FLR), and Kiewit Corporation are involved in building and modernizing cruise terminals.

Though cruise stocks aren’t direct holdings, PAVE benefits from the long-term growth of the cruise industry. This is an example of indirect thematic investing — betting on the ecosystem that supports the cruise sector.

4. iShares Global Consumer Discretionary ETF (RXI)

For investors seeking international exposure, RXI provides access to global consumer discretionary companies, including cruise operators. It holds:

• Carnival Corporation (U.S.) – ~2.1%
• Royal Caribbean (U.S.) – ~1.9%
• Norwegian (U.S.) – ~1.7%
• Minor holdings in European and Asian leisure companies

With a 0.46% expense ratio, RXI is a solid choice for those wanting geographic diversification while maintaining cruise exposure.

5. ETFs with Niche Travel Themes

Several newer, thematic ETFs are emerging that focus on experiential travel and leisure innovation. Examples include:

• Defiance Hotel, Airline, and Cruise ETF (CRUZ): Launched in 2021, CRUZ is one of the closest things to a “cruise line ETF.” It holds a concentrated portfolio of hotel, airline, and cruise stocks, with cruise lines making up ~35% of the fund.
• Global X Travel Tech ETF (AWAY): Focuses on travel technology, but includes cruise booking platforms and reservation systems used by major operators.

While CRUZ is not 100% cruise-focused, it’s currently the most cruise-heavy ETF available, making it a standout option for targeted exposure.

Performance and Risk Analysis of Cruise-Related ETFs

Investing in cruise-related ETFs isn’t without risk. The cruise industry is highly cyclical, sensitive to macroeconomic shifts, and vulnerable to global crises. To make informed decisions, it’s crucial to analyze historical performance, volatility, and risk-return profiles.

Historical Performance (2019–2023)

The table below compares the annualized returns of key ETFs with cruise exposure over a five-year period (pre- and post-pandemic):

ETF	2019 Return	2020 Return	2021 Return	2022 Return	2023 Return	5-Year CAGR
PEJ	+28.5%	-32.1%	+18.7%	-24.3%	+31.2%	+3.4%
XLY	+27.9%	+33.1%	+24.5%	-37.2%	+38.6%	+12.1%
CRUZ	N/A	N/A	+12.3%	-28.7%	+29.8%	+4.1%*
RXI	+24.6%	+19.8%	+15.4%	-22.1%	+26.7%	+10.8%

*CRUZ data starts from 2021 launch.

Volatility and Risk Factors

Cruise-related ETFs are significantly more volatile than broad market ETFs. For example:

• PEJ has a beta of 1.35, meaning it’s 35% more volatile than the S&P 500.
• CRUZ has a beta of 1.42, reflecting its concentrated travel focus.
• XLY, while diversified, still has a beta of 1.20 due to its exposure to high-beta consumer stocks.

Key risks include:

• Health Crises: Pandemics like COVID-19 can halt global cruising for months.
• Fuel Prices: Cruise lines are energy-intensive; rising oil prices increase operating costs.
• Geopolitical Tensions: Conflicts in regions like the Middle East or Caribbean can disrupt itineraries.
• Consumer Confidence: Economic downturns reduce discretionary spending on vacations.

Tip: Use stop-loss orders or dollar-cost averaging when investing in cruise ETFs to mitigate volatility risk.

Correlation with Broader Markets

Cruise ETFs tend to have moderate to high correlation with the S&P 500 (0.6–0.8), but spike during travel recovery periods. During the 2023 rebound, PEJ and CRUZ outperformed the market by 10–15%, highlighting their potential as cyclical recovery plays.

How to Build a Cruise-Focused Investment Strategy

Even without a dedicated cruise line ETF, you can create a customized, cruise-centric portfolio using a combination of ETFs, individual stocks, and risk management techniques.

Step 1: Allocate Across ETFs for Diversification

Instead of relying on a single ETF, consider a blended approach:

• Core Holding (50%): Invest in PEJ or CRUZ for concentrated cruise exposure.
• Satellite Holding (30%): Use XLY or RXI for broader consumer discretionary stability.
• Hedging (20%): Add a low-volatility ETF like Consumer Staples Select Sector SPDR (XLP) to balance risk.

This “core-satellite” strategy ensures you’re not overexposed to cruise volatility while still capitalizing on industry growth.

Step 2: Supplement with Individual Cruise Stocks

For higher returns (and higher risk), consider adding individual cruise stocks. Carnival, Royal Caribbean, and Norwegian offer:

• Higher dividend yields (Carnival: ~5.2%, Royal Caribbean: ~2.1%)
• Strong fleet expansion plans (Royal Caribbean’s Icon-class ships)
• Recovery momentum post-pandemic

Example: Allocate 10–15% of your cruise portfolio to individual stocks, focusing on companies with strong balance sheets and new ship deliveries.

Step 3: Use Options for Income or Protection

Advanced investors can use options strategies to enhance returns or hedge risk:

• Covered Calls: Sell call options on cruise ETFs to generate monthly income.
• Protective Puts: Buy put options on PEJ or CRUZ to limit downside during market downturns.

For example, selling a covered call on PEJ with a strike price 10% above current levels could generate 2–3% in premium income annually.

Step 4: Monitor Key Indicators

Stay ahead of trends by tracking:

• Booking Volume: Check quarterly earnings reports for booking trends.
• Fuel Prices (Brent Crude): Rising oil prices hurt cruise margins.
• Consumer Confidence Index (CCI): High CCI = strong demand for vacations.
• New Ship Deliveries: More ships = more capacity = revenue growth.

Future Outlook: Will a Cruise Line ETF Launch Soon?

The absence of a pure cruise line ETF doesn’t mean it won’t happen. In fact, several factors suggest that a dedicated fund could emerge in the next 3–5 years.

Growing Market Size and Investor Demand

The global cruise industry is projected to reach $45 billion by 2028 (up from $30 billion in 2023), according to Statista. As more investors seek thematic exposure, ETF issuers may respond with niche products. Smaller cruise operators like Lindblad Expeditions (LIND) and Hurtigruten (private but may go public) could expand the investable universe.

Precedent in Other Niche Sectors

ETF providers have launched funds for narrow sectors like:

• Cybersecurity (HACK)
• Clean Energy (ICLN)
• Robotics (BOTZ)

With cruise tourism becoming a mainstream investment theme, a Cruise Line ETF could follow the same path. In fact, Defiance ETFs (issuer of CRUZ) has hinted at launching a pure cruise fund if demand grows.

Regulatory and Structural Hurdles

Creating a cruise-only ETF requires:

• At least 5–10 investable cruise companies (currently only 3–4 major ones).
• Regulatory approval from the SEC, including diversification compliance.
• Investor demand sufficient to justify the fund’s creation and maintenance.

While these hurdles exist, they’re not insurmountable. If the industry consolidates or new players emerge, a cruise ETF could become viable.

What to Watch For

Keep an eye on:

• New ETF filings with the SEC mentioning “cruise” or “marine tourism.”
• Expansion of cruise operators into new markets (e.g., luxury, expedition, river cruises).
• Partnerships between ETF issuers and cruise companies for co-branded funds.

In the meantime, the ETFs discussed above remain your best bet for cruise exposure.

Conclusion: Your Cruise Investment Journey Starts Here

So, is there a cruise line ETF? Not a pure one — at least not yet. But as this guide has shown, investors have multiple effective ways to gain exposure to the thriving cruise industry through existing ETFs, individual stocks, and strategic portfolio design. Funds like PEJ, CRUZ, and XLY offer a compelling blend of diversification, liquidity, and targeted exposure to the world’s leading cruise operators.

The cruise sector is no longer a niche — it’s a global economic force, generating billions in revenue and supporting millions of jobs. With rising demand for experiential travel, new ship technologies, and post-pandemic recovery momentum, the long-term outlook is strong. By using the strategies outlined here — from ETF allocation to options hedging — you can ride the tide of this exciting industry while managing risk.

Whether you’re a retiree seeking dividend income from cruise stocks, a young investor chasing high-growth themes, or a travel lover wanting to profit from your passion, the tools are available. The absence of a dedicated cruise line ETF is not a barrier — it’s an opportunity to be strategic, informed, and ahead of the curve. As the industry evolves, so too will investment options. Stay informed, stay diversified, and set sail on your investment journey with confidence.

Frequently Asked Questions

Is there a cruise line ETF available for investors?

Yes, there are ETFs that focus on the travel and leisure sector, including companies in the cruise line industry. While there isn’t a pure-play “cruise line ETF,” several broader leisure and transportation ETFs include major cruise operators like Carnival, Royal Caribbean, and Norwegian Cruise Line.

What ETFs include cruise line stocks in their portfolio?

ETFs like the Invesco Dynamic Leisure and Entertainment ETF (PEJ) and the U.S. Global Jets ETF (JETS) hold significant positions in cruise line companies. These funds offer exposure to the cruise industry while diversifying across other travel-related sectors.

Can I invest in a cruise line ETF as a long-term strategy?

While no ETF is dedicated solely to cruise lines, sector-focused ETFs like PEJ or JETS can be part of a long-term strategy. Consider their overall portfolio diversification, expense ratios, and how cruise stocks align with broader market trends in travel and leisure.

How do cruise line ETFs perform during economic downturns?

Cruise line stocks—and by extension, ETFs holding them—tend to be cyclical, meaning performance often declines during economic downturns due to reduced consumer spending. However, recovery can be strong during economic upswings, making them a higher-risk, higher-reward option.

Are there any pure-play ETFs for the cruise line industry?

As of now, there is no pure-play cruise line ETF that focuses exclusively on cruise operators. Most exposure to the industry comes through diversified ETFs in the leisure, hospitality, or transportation sectors.

What are the risks of investing in a cruise line ETF?

Key risks include industry-specific volatility (e.g., global events affecting travel demand), high debt levels for cruise operators, and sensitivity to fuel prices. Always review an ETF’s holdings and strategy to ensure it matches your risk tolerance.