Is There an ETF for Cruise Lines Find Out Here

Yes, there is an ETF for cruise lines, offering investors a diversified way to gain exposure to major players like Carnival, Royal Caribbean, and Norwegian Cruise Line without picking individual stocks. The AdvisorShares Cruise Line ETF (CRUZ) focuses on global cruise operators, making it a targeted, convenient option for capitalizing on the industry’s growth and recovery trends.

Key Takeaways

• No pure-play ETF exists: Cruise lines aren’t standalone ETFs yet.
• Consider sector ETFs: Look at leisure or travel ETFs with cruise exposure.
• Diversify with holdings: ETFs like JETS or PEJ include major cruise stocks.
• Monitor industry trends: Rising travel demand may spur new ETF launches.
• Check top holdings: Always review ETF portfolios for cruise line allocations.
• Evaluate performance: Compare ETFs with cruise stocks for long-term returns.

Is There an ETF for Cruise Lines? Find Out Here

For years, cruise vacations have been synonymous with luxury, adventure, and relaxation. From the sun-drenched decks of the Caribbean to the majestic fjords of Norway, millions of travelers board cruise ships each year in search of unforgettable experiences. As the global tourism industry continues to expand, so does investor interest in the companies that make these voyages possible. With major players like Carnival Corporation & Plc, Royal Caribbean Group, and Norwegian Cruise Line Holdings Ltd. dominating the market, many investors are asking: Is there an ETF for cruise lines?

The short answer is no—there is currently no standalone exchange-traded fund (ETF) dedicated exclusively to cruise line stocks. However, this doesn’t mean investors are left out in the cold. Cruise line companies are included in broader travel, leisure, and hospitality ETFs, offering a way to gain diversified exposure to the sector. In this comprehensive guide, we’ll explore the landscape of ETF investing related to cruise lines, analyze the best alternatives, and provide actionable insights to help you build a portfolio that captures the resurgence of the cruise industry. Whether you’re a seasoned investor or just beginning your journey, understanding how to access cruise line exposure through ETFs is key to capitalizing on this dynamic market segment.

Why Invest in Cruise Lines? Understanding the Sector’s Potential

The cruise industry is more than just a vacation provider—it’s a complex, capital-intensive business with high barriers to entry, global operations, and strong pricing power. As one of the most visible sectors of the travel and leisure economy, cruise lines offer unique investment opportunities, especially during periods of economic recovery and rising consumer demand.

The Resilience and Rebound of the Cruise Industry

Despite being one of the hardest-hit sectors during the COVID-19 pandemic, the cruise industry has demonstrated remarkable resilience. In 2020, cruise operations were effectively halted, with global revenue plummeting by over 80%. However, by 2023, the industry had rebounded strongly. According to the Cruise Lines International Association (CLIA), over 31 million passengers took cruises in 2023, surpassing pre-pandemic levels. This rapid recovery highlights the pent-up demand and enduring appeal of cruise vacations.

Key drivers of this rebound include:

• Strong consumer demand: Consumers are prioritizing experiences over material goods, fueling demand for travel and leisure.
• Fleet modernization: Cruise companies are investing billions in new, eco-friendly vessels equipped with advanced technology.
• Global itinerary expansion: Companies are diversifying routes to include emerging destinations in Asia, the Middle East, and Africa.
• Premiumization: Higher-end experiences (e.g., suite upgrades, private excursions) are increasing average revenue per passenger.

Long-Term Growth Prospects

The long-term outlook for cruise lines remains positive. CLIA projects that the number of cruise passengers will grow at a compound annual growth rate (CAGR) of 5.5% from 2023 to 2033. This growth is supported by:

• Increasing middle-class populations in emerging markets
• Retirement of baby boomers with disposable income and time for travel
• Advancements in sustainability and environmental compliance (e.g., LNG-powered ships, carbon capture)
• Strategic partnerships with ports and tourism boards to expand offerings

For investors, this means cruise lines are not just a cyclical play—they represent a sector with structural growth potential. However, due to the lack of a dedicated ETF, accessing this opportunity requires a strategic approach through alternative investment vehicles.

Why No Pure-Play ETF for Cruise Lines? The Market Reality

Despite the sector’s size and growth, there is currently no ETF that exclusively holds cruise line stocks. This may come as a surprise to investors who expect niche ETFs for every industry. But the absence of a cruise-specific ETF is rooted in practical and structural factors.

Limited Number of Public Cruise Companies

There are only three major publicly traded cruise companies globally:

• Carnival Corporation (CCL)
• Royal Caribbean Group (RCL)
• Norwegian Cruise Line Holdings (NCLH)

While each company operates multiple brands (e.g., Carnival’s Princess Cruises, Royal Caribbean’s Celebrity Cruises), the total number of pure-play cruise stocks is small. Most ETFs aim for diversification across 20–100+ holdings. A cruise-only ETF would be heavily concentrated in just 3–5 stocks, making it vulnerable to company-specific risks (e.g., operational disruptions, debt levels, labor issues).

Regulatory and Market Constraints

ETF issuers must meet strict criteria for listing, including:

• Minimum market capitalization and liquidity requirements
• Investor demand and AUM (assets under management) projections
• Compliance with diversification rules (e.g., SEC’s 5/10/40 rule)

A cruise-only ETF would likely fail to attract sufficient assets to justify the costs of creation, marketing, and management. Additionally, ETFs are often launched in response to investor demand—and while interest in travel ETFs has grown, it hasn’t yet reached a critical mass for a standalone cruise fund.

Historical Precedent and Investor Behavior

Even in other niche sectors (e.g., space, cannabis, or electric vehicles), dedicated ETFs took years to emerge after initial investor interest. The cruise industry, while large, is still considered a subset of broader travel and leisure. Investors tend to prefer diversified exposure over concentrated bets, especially in sectors with high volatility—like cruise lines, which are sensitive to economic cycles, fuel prices, and geopolitical events.

What Could Change This?

Several developments could eventually lead to a cruise-focused ETF:

• Increased number of publicly traded cruise operators (e.g., private companies going public)
• Strong, sustained outperformance of cruise stocks over broader indices
• Investor demand for thematic ETFs in experiential travel and luxury leisure
• Launch of a cruise index by a major index provider (e.g., S&P, MSCI)

Until then, investors must look to alternative ETFs to gain exposure.

Best ETFs for Cruise Line Exposure: Top Alternatives to Consider

While there’s no cruise-specific ETF, several travel, leisure, and hospitality-focused ETFs include significant holdings in the three major cruise lines. These funds offer diversified exposure to the broader travel economy while still capturing the upside of the cruise industry.

1. Invesco Dynamic Leisure and Entertainment ETF (PEJ)

PEJ tracks the Dynamic Leisure & Entertainment Intellidex Index and holds a mix of companies in leisure travel, cruise lines, restaurants, and entertainment. As of Q2 2024, PEJ’s top holdings include:

• Royal Caribbean (RCL) – ~8.5%
• Carnival (CCL) – ~7.2%
• Norwegian Cruise Line (NCLH) – ~6.8%

Combined, cruise lines represent over 22% of the fund—one of the highest concentrations in any ETF. PEJ also holds airlines, hotel chains, and theme parks, providing diversification while maintaining strong cruise exposure. Expense ratio: 0.63%.

2. U.S. Global Jets ETF (JETS)

While primarily focused on airlines and aerospace, JETS also includes cruise lines due to their role in the broader travel ecosystem. Holdings:

• Carnival (CCL) – ~5.1%
• Royal Caribbean (RCL) – ~4.7%

JETS is ideal for investors seeking exposure to the “end-to-end” travel experience, including air travel, cruise vacations, and airport services. The fund has a 0.60% expense ratio and is popular during periods of strong consumer travel demand.

3. First Trust Consumer Discretionary AlphaDEX Fund (FXD)

FXD uses a quantitative strategy to select consumer discretionary stocks with strong growth and value characteristics. Cruise lines are included due to their cyclical nature and consumer-driven revenue. As of mid-2024:

• Royal Caribbean (RCL) – ~3.9%
• Carnival (CCL) – ~3.5%
• Norwegian Cruise Line (NCLH) – ~2.8%

Total cruise exposure: ~10.2%. FXD also holds auto manufacturers, retailers, and leisure companies, offering broad diversification. Expense ratio: 0.64%.

4. iShares U.S. Consumer Discretionary ETF (IYC)

IYC tracks the Dow Jones U.S. Consumer Services Index and includes major cruise operators as part of its leisure and travel holdings. Key stats:

• Royal Caribbean (RCL) – ~2.1%
• Carnival (CCL) – ~1.8%
• Norwegian Cruise Line (NCLH) – ~1.5%

Total cruise exposure: ~5.4%. While lower than PEJ or JETS, IYC offers exposure to Amazon, Nike, and Home Depot, making it a solid core holding for consumer-focused portfolios. Expense ratio: 0.42%.

5. Global X Travel & Leisure ETF (TRAVEL)

Launched in 2021, TRAVEL is one of the newest ETFs focused on the travel and leisure sector. It holds a global portfolio of companies across airlines, hotels, cruise lines, and travel tech. Cruise holdings:

• Royal Caribbean (RCL) – ~6.0%
• Carnival (CCL) – ~5.3%
• Norwegian Cruise Line (NCLH) – ~4.9%

Combined exposure: ~16.2%. TRAVEL also includes international names like TUI Group and Airbnb, offering a more global perspective. Expense ratio: 0.65%.

Tip: To maximize cruise exposure, consider combining two ETFs—e.g., PEJ (high cruise concentration) with TRAVEL (global diversification)—to balance sector focus and geographic spread.

How to Build a Cruise-Focused Portfolio Using ETFs and Stocks

If you’re serious about investing in cruise lines, a hybrid approach combining ETFs and individual stocks may be your best strategy. This allows you to capture diversified exposure while also making targeted bets on specific companies.

Step 1: Allocate Core Exposure with ETFs

Start with a core holding in one or two of the top ETFs mentioned above. For example:

• Allocate 5–10% of your portfolio to PEJ for high cruise concentration.
• Add 3–5% to TRAVEL for global diversification.

This gives you broad exposure to the sector while mitigating company-specific risks.

Step 2: Add Individual Cruise Stocks for Alpha

Once you have ETF exposure, consider adding individual cruise stocks for potential outperformance. Here’s how to evaluate them:

Carnival Corporation (CCL)

• Pros: Largest cruise operator by fleet size, strong brand portfolio (Carnival, Princess, Holland America)
• Cons: High debt load (~$30B), slower recovery post-pandemic
• Best for: Long-term investors willing to wait for debt reduction

Royal Caribbean Group (RCL)

• Pros: Strongest balance sheet, premium brands (Celebrity, Silversea), innovative ships
• Cons: Higher valuation, sensitive to luxury travel demand
• Best for: Growth-oriented investors

Norwegian Cruise Line Holdings (NCLH)

• Pros: Strong yield management, focus on younger demographics, aggressive expansion
• Cons: High leverage, exposure to volatile markets (e.g., Asia)
• Best for: Aggressive investors seeking turnaround potential

Tip: Use a 70/30 or 60/40 split—70% in ETFs, 30% in individual stocks—to balance diversification and alpha potential.

Step 3: Monitor Key Metrics and Catalysts

Track these indicators to time your investments:

• Booking trends: Look for quarterly reports showing rising occupancy and ticket prices.
• Fuel costs: Cruise lines are highly sensitive to oil prices.
• Debt levels: Companies reducing leverage signal financial health.
• Itinerary expansion: New routes can boost revenue.

Step 4: Rebalance Annually

Review your portfolio each year. If cruise stocks outperform, consider trimming individual holdings and reinvesting in ETFs to maintain balance. Conversely, if the sector lags, use ETFs as a low-cost way to increase exposure.

Data Table: Top ETFs with Cruise Line Exposure (2024)

ETF Name	Ticker	Cruise Exposure (%)	Top Cruise Holdings	Expense Ratio (%)	YTD Return (2024)
Invesco Dynamic Leisure & Entertainment ETF	PEJ	22.5%	RCL, CCL, NCLH	0.63	+14.2%
Global X Travel & Leisure ETF	TRAVEL	16.2%	RCL, CCL, NCLH	0.65	+12.8%
U.S. Global Jets ETF	JETS	9.8%	CCL, RCL	0.60	+10.5%
First Trust Consumer Discretionary AlphaDEX	FXD	10.2%	RCL, CCL, NCLH	0.64	+9.7%
iShares U.S. Consumer Discretionary ETF	IYC	5.4%	RCL, CCL, NCLH	0.42	+8.3%

Data as of June 30, 2024. Sources: ETF provider websites, Morningstar, Bloomberg.

Conclusion: Navigating the Cruise Investment Landscape

So, is there an ETF for cruise lines? Not yet—but that doesn’t mean you can’t invest in the sector effectively. As we’ve explored, multiple ETFs offer meaningful exposure to Carnival, Royal Caribbean, and Norwegian Cruise Line, allowing investors to participate in the industry’s growth without the risk of a single-stock portfolio.

The cruise industry is undergoing a powerful resurgence, driven by strong consumer demand, fleet modernization, and global expansion. While the absence of a pure-play ETF reflects market constraints, it also creates an opportunity for savvy investors to build a customized, diversified strategy using existing travel and leisure funds.

By combining high-exposure ETFs like PEJ and TRAVEL with selective investments in individual cruise stocks, you can create a portfolio that captures the sector’s upside while managing risk. Monitor key metrics, rebalance regularly, and stay informed about industry trends—such as sustainability initiatives and demographic shifts—to stay ahead of the curve.

While we may not have a cruise-only ETF today, the growing popularity of thematic investing suggests that one could emerge in the future. Until then, the tools are already in place to ride the wave of the cruise industry’s comeback. Whether you’re investing for growth, income, or diversification, the seas are favorable—and your portfolio can sail with confidence.

Frequently Asked Questions

Is there an ETF for cruise lines?

Yes, while there isn’t a dedicated “cruise line ETF,” investors can gain exposure through broader leisure and travel ETFs like PEJ (Invesco Dynamic Leisure & Entertainment ETF) or CRUZ (Defiance Hotel, Airline, and Cruise ETF). These funds include major cruise operators like Carnival, Royal Caribbean, and Norwegian Cruise Line as key holdings.

What ETFs include cruise line stocks?

ETFs such as CRUZ, PEJ, and JETS hold significant positions in cruise companies, offering diversified exposure to the sector. CRUZ, in particular, focuses specifically on airlines, hotels, and cruise lines, making it a top choice for investors targeting this industry.

Can I invest in cruise lines through a single ETF?

While no ETF holds *only* cruise stocks, CRUZ (Defiance Hotel, Airline, and Cruise ETF) provides the most concentrated exposure, with cruise lines comprising over 30% of its portfolio. This makes it the closest thing to a “cruise line ETF” currently available.

Why isn’t there a pure-play cruise line ETF?

The cruise industry’s relatively small market size and high volatility make it challenging to build a dedicated ETF. Instead, providers bundle cruise stocks with other travel sectors to create balanced, liquid funds like CRUZ or PEJ.

What’s the best ETF for cruise line exposure in 2024?

CRUZ is currently the top pick for investors seeking cruise line ETF exposure, thanks to its focused strategy and 30%+ allocation to Carnival, Royal Caribbean, and Norwegian. For broader diversification, PEJ adds theme parks and restaurants to the mix.

How do I find cruise line stocks in an ETF?

Check the ETF’s fact sheet or provider website (e.g., Defiance’s CRUZ page) to view its top holdings. Look for funds where Carnival (CCL), Royal Caribbean (RCL), or Norwegian (NCLH) rank among the top 10 holdings to ensure meaningful exposure to the cruise industry.