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A New Direction for the JETS Index

from ETF Trends June 8, 2020

The U.S. Global Jets Index is undergoing a change in the June 2020 rebalance. The index, which is composed of domestic and international passenger airlines, aircraft manufacturers, airports and more, is growing to 39 components, up from the current maximum of 35. 

A filing with the SEC confirming the change reads: “At the time of each reconstitution of the Index, each of the four largest U.S. or Canadian passenger airline companies, as measured primarily by their market capitalization and, to a lesser extent, their passenger load factor, receives a 10 percent weighting allocation of the Index. Each of the next five largest U.S. or Canadian passenger airline companies receives a 4 percent weighting allocation of the Index.”

A New Direction for the JETS Index

This adjustment will allow the index to reduce dependence on the top four American carriers and give more exposure to Canada. Previously the top four American carriers measured by market capitalization would receive a weighting of 12 percent in the index. Now, the top four American or Canadian carriers will receive a 10 percent weighting allocation. ETF Trends notes that JETS is one of the industry ETFs that has garnered attention this year as investors look for rebound plays.Learn more about JETS today!

U.S. Global Investors has authored and is responsible for the summary on this page. All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice. ETF Trends publisher Tom Lydon is on the board of U.S. Global Investors.

The outbreak of the COVID-19 pandemic and the resulting actions to control or slow the spread has had a significant detrimental effect on the global and domestic economies, financial markets and industries, including airlines. U.S. Global Investors continues to monitor the impact of COVID-19, but it is too early to determine the full impact this virus may have on commercial aviation. Should this emerging macro-economic risk continue for an extended period, there could be an adverse material financial impact to the U.S. Global Jets ETF.