Along with U.S. spirits producers, WSKY also allows exposure to foreign names that don’t trade in America. According to the press release:
WSKY invests primarily in companies that derive the majority of their revenue from producing and marketing whiskey and spirits, as well as a small number of companies that derive part of their revenue from the industry. Major names in the underlying index include Pernod Ricard (France), Diageo (England). Brown Forman (US), Thai Beverage (Thailand), Kirin Holdings (Japan), and United Spirits (India), among others.
In the U.S. alone, high end premium and super-premium bourbon and Tennessee whiskey brands saw revenues surge 50% and 155%, respectively, between 2010 and 2015, according to the Distilled Spirits Council of the United States. Meanwhile, total U.S. spirits sales climbed to a staggering $72 billion in 2015.
According to fund management, that trend isn’t going to change any time soon:
“We believe we’re at year 5 of a 25-40 year supercycle that could see continued growth in consumer demand for whiskey and spirits, much like what has occurred with craft breweries over the past two decades,” said David Bolton, President and CEO at Spirited Funds.
WSKY began trading today on the NYSE, and we’ll be sure to bring investors more information on the brand new fund once it accumulates some assets and trading history.