Airline Industry ETF
Definition of 'Airline Industry ETF'A sector exchange-traded fund (ETF) that invests in stocks of airline companies, so as to obtain investment results that correspond to those of an underlying airline index. Because of the very limited number of airlines in most nations, an airline ETF is unlikely to be restricted only to domestic carriers, but would very likely include foreign carriers as well. |
|
Investopedia explains 'Airline Industry ETF'The airline industry is susceptible to a number of factors that can affect demand for air travel, such as recession, terrorist action, and weather-related disruption. An airline ETF may underperform at such times, as well when fuel prices are surging, since the cost of aviation fuel has a major impact on airline profitability.By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you'd pay on any regular order |
Related Definitions
Articles Of Interest
-
Spread Out Risk With Sector-Based ETFs
These ETFs take the sector rotation strategy from institutional investors and puts it in your hands. -
An Introduction To Sector ETFs
Find out how these specialized ETFs can give your portfolio the punch it needs. -
Is That Airline Ready For Lift-Off?
Break through the clouds to see if these stocks will rocket higher, or crash and burn. -
Terrorism's Effects On Wall Street
Terrorist activity tends to have a negative impact on the markets. Find out how to take cover. -
Multi-Asset Funds Or Your Own Mix?
The underlying concept of mixed funds is very appealing. Discover if you're better off with professional management or creating a mixed fund of your own. -
The Best ETFs For Your 401k
ETFs can be a good alternative to traditional retirement fund options because of their low cost, superior performance and liquidity. -
Why You Should Invest In Municipal Bond ETFs
These versatile instruments have become popular with investors in higher tax brackets and fill a specific niche in the wide selection of fixed-income offerings. -
The Best Way To Buy Silver
Discover whether ETFs or physical bullion is the best way for investors to get exposure to silver. -
Home Sales Hit Fastest Pace In Three Years
The pace of home sales hit a three-year high in February, a sign the economy is definitely on the mend. Homebuilder stocks have had a huge run the past year. I'll look at how to play what seems ... -
The Truth Behind Tactical ETF Investing
Are tactical ETFs reasonable and effective investment strategies or just plain speculative behavior?
Free Annual Reports