JETS is the best (and only) airline ETF An airline exchange-traded fund (ETF) can provide diversified exposure to the air travel industry, ...
JETS is the best (and only) airline ETF
An airline exchange-traded fund (ETF) can provide diversified exposure to the air travel industry, including aircraft manufacturers, airline operators, airports, and terminal services. The U.S. airline industry includes major carriers such as American Airlines Inc. (AAL), Delta Air Lines Inc. (DAL) and Southwest Airlines Co. (LUV). The industry has suffered over the past year from plunging air travel due to the COVID-19 pandemic and is now preparing for a sharp pickup in summer air travel. Also, an emerging group of new start-up airlines also is attempting to capitalize on the industry's recovery.1 For investors optimistic about the industry's longterm recovery, an airline ETF provides a way to get broad-based exposure to that trend.There is only a single option when it co mes to ETFs focused on the airline industry, the U.S. Global Jets ETF (JETS). JETS has dramatically outperformed the broader market with a total return of 71.7% over the past 12 months compared to the S&P 500's total return of 50.7%. The S&P performance figure is as of April 30, while all other data throughout are as of May 3.
U.S. Global Jets ETF (JETS)
Performance over 1-Year: 71.7%
Expense Ratio: 0.60%
Annual Dividend Yield: 0.03%
3-Month Average Daily Volume: 6,185,396
Assets Under Management: $3.9 billion
Inception Date: April 28, 2015
Issuer: U.S. Global Investors
JETS is the only pure play airline ETF. This fund has 80% of its portfolio allocated to domestic airlines and companies involved in the aviation industry (aircraft manufacturers, terminal services companies, and airports), and about 20% invested in international companies. While JETS is a multi-cap ETF, it is weighted predominantly toward large-cap companies. Overall, its investment strategy seeks to track the U.S. Global Jets Index which is an index of airline stocks.4 Below, we'll look at the top 10 holdings for this fund.
