April 13, 2021 – U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with longstanding experience in global markets and specialized sectors, today is pleased to announce that its airlines ETF, the U.S. Global Jets ETF (NYSE: JETS), is now listed on the Mexican Stock Exchange (BMV). The new listing will expand JETS’ global footprint and allow investors in Mexico to access the fund.
The BMV is the second largest stock exchange in Latin America with a total market capitalization of over $530 billion. JETS will be cross listed on the International Quotation System (SIC), a platform which allows investing in exchange-traded funds whose securities have been listed offshore.
“We couldn’t be more thrilled with how JETS has performed and attracted inflows, and we are excited to give investors in Mexico the opportunity to participate,” says Frank Holmes, CEO and chief investment officer of U.S. Global Investors. “Our smart-beta 2.0 ETF is still the only pure-play global airlines investment vehicle available today.”
Launched in 2015, JETS began attracting significant assets when airline stocks plunged due to the COVID-19 pandemic halting global travel. The fund reached a new milestone of $4 billion in assets under management (AUM) last month. As of the market close on April 7, 2021, JETS AUM stood at approximately $4.16 billion, a more than 1,150% increase from a year earlier. Participants have been as varied as retail investors to hedge funds to insurance companies.
“There’s no doubt that 2020 was a challenging year for the airline industry, but there’s reason to be optimistic for 2021 as the pandemic eases and vaccine rollout fuels commercial flight demand,” Mr. Holmes says. “We’re seeing leisure travel rebound as greater than one in five Americans are now fully vaccinated against COVID-19; more than a third of the U.S. has received at least one shot. For 25 days straight as of April 4, over 1 million people per day were screened at U.S. airports. The new guidance from the Centers for Disease Control and Prevention (CDC), which says that fully vaccinated people can travel at low risk to themselves, is highly positive for the travel industry, and airline stocks specifically.
“We believe JETS will be well received by Mexican investors. Our quant approach to security selection has resulted in a number of Latin American airlines and airports being part of the ETF, including Brazil’s GOL Airlines and Azul Airlines and Mexico’s Volaris and Grupo Aeroportuario del Sureste. Once a quarter, JETS is rebalanced and reconstituted, with a focus on America’s four largest airlines, America, Delta, United and Southwest.”
To learn more about the U.S. Global Jets ETF (JETS), click here.
About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 50 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides money management and other services to U.S. Global Investors Funds and U.S. Global ETFs.
Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a statutory and summary prospectus by visiting https://www.usglobaletfs.com/. Read it carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the fund. Brokerage commissions will reduce returns. Because the fund concentrates its investments in specific industries, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The fund is non-diversified, meaning it may concentrate more of its assets in a smaller number of issuers than a diversified fund. The fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The fund may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the fund may diverge from that of the index. Because the fund may employ a representative sampling strategy and may also invest in securities that are not included in the index, the fund may experience tracking error to a greater extent than a fund that seeks to replicate an index. The fund is not actively managed and may be affected by a general decline in market segments related to the index. Airline companies may be adversely affected by a downturn in economic conditions that can result in decreased demand for air travel and may also be significantly affected by changes in fuel prices, labor relations and insurance costs.
Smart beta refers to a type of exchange-traded fund (ETF) that uses a rules-based system for selecting investments to be included in the fund portfolio. Positive cash flow indicates that a company is adding to its cash reserves, allowing it to reinvest in the company, pay out money to shareholders, or settle future debt payments. 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. All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice.
Distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment adviser to JETS.