Although the airline industry is suffering as a result of the spread of the coronavirus pandemic, if you're bullish on its post-COVID future, then this could be an opportunity to find some bargains. The U.S. airline industry includes major carriers such as American Airlines Group Inc. (AAL), Delta Air Lines, Inc. (DAL), and Southwest Airlines Co. (LUV).
Unlike some other industries, which are tracked by several ETFs, there is currently only a single ETF specifically focused on airlines. The U.S. Global Jets ETF (JETS) is the only fund of this kind targeting the airline industry, making it the best (as well as the worst) performer. While the fund has dropped significantly in the last 12 months, with a 1-year return of -24.2%, investors betting on a turnaround for air travel may find things to like. All figures are as of March 12, 2020.
- Performance over 1 year: -24.2%
- Expense Ratio: 0.60%
- Annual Dividend Yield: 1.65%
- 3-Month Average Daily Volume: 119,939
- Assets Under Management: $71.0 million
- Inception Date: April 28, 2015
- Issuing Company: U.S. Global Investors
JETS is currently the only pure-play airline ETF available. This fund invests primarily in domestic airline companies and companies involved in the airline industry (aircraft manufacturers, terminal services companies, and airports), although a small portion of its portfolio is in international companies. Although 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. Below, we'll look at the top 10 holdings for this fund.
|Top JETS Holdings|
|Company Name (Ticker)||Percent of JETS Assets||Description of Company|
|Southwest Airlines Co. (LUV)||14.1%||Low-cost airline|
|Delta Air Lines Inc. (DAL)||13.8%||Domestic and international airline|
|United Airlines Holdings Inc. (UAL)||10.2%||Domestic and international airline|
|American Airlines Group Inc. (AAL)||10.0%||Domestic and international airline|
|JetBlue Airways Corp. (JBLU)||4.1%||Low-cost airline|
|Allegiant Travel Co. (ALGT)||4.0%||Low-cost airline|
|Alaska Air Group Inc. (ALK)||3.8%||Domestic airline|
|SkyWest Inc. (SKYW)||3.6%||Domestic airline|
|Spirit Airlines Inc. (SAVE)||3.3%||Low-cost airline|
|Air Transport Services Group Inc. (ATSG)||3.2%||Air cargo transportation|