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Broad-Based Exposure to the Travel Recovery

from Investopedia December 14, 2020

There is only one pure-play airline ETF on the market: The U.S. Global Jets ETF (JETS). Matthew Johnson highlights this fact on Investopedia:

“An airline exchange-traded fund (ETF) can provide diversified exposure to the air travel industry, including aircraft manufacturers, airline operators, airports, and terminal services.”

JETS invests in the global airline sector through not only passenger carriers, but also through airports, airport operators, terminal services and plane manufacturers. However, most of the fund is comprised of North American airlines. In fact, the fund’s top four holdings, representing 10% each, are the top American or Canadian airlines based on market capitalization.

Broad-Based Exposure to the Travel Recovery

A COVID-19 vaccine has been approved for use in the U.K. and is nearing the final stages in the U.S. Many are optimistic that a vaccine could spur a global travel recovery by making travelers feel safe and confident in flying. This would be positive for carriers who could see a surge in bookings.

“For investors bullish on the prospects of an approved vaccine helping the air travel industry make a rapid comeback, an airline ETF provides a way to get broad-based exposure to that recovery.”

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. 

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.