Although the airline industry is suffering as a result of the coronavirus, if you're bullish on its post-pandemic future, then this could be an opportunity to hunt for bargains. The U.S. airline industry includes major carriers such as American Airlines (AAL), Delta Air Lines (DAL) and Southwest Airlines (LUV).
- The airline industry has drastically underperformed the broader market in the past year.
- The best (and only) ETF is JETS.
- The top holdings of this fund are LUV, DAL, and UAL.
Unlike some other industries, which are tracked by several ETFs, there is just 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 (and worst) performer in its class. The fund has dramatically underperformed the broader market in the past year, with a 1-year trailing total return of -39.5% as compared to 19.1% for the S&P 500. Below, we take a closer look at JETS. All figures are as of August 18, 2020.
- 1-year Trailing Total Returns: -39.5%
- Expense Ratio: 0.60%
- Annual Dividend: 2.26%
- 3-Month Average Daily Volume: 6,267,594
- Assets Under Management: $1.4 billion
- Inception Date: April 28, 2015
- Issuing Company: U.S. Global Investors
JETS is the only pure play airline ETF. This fund invests primarily in domestic airlines and companies involved in the aviation industry (aircraft manufacturers, terminal services companies and airports), although a portion of its portfolio is 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. 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)||10.6%||Low-cost carrier|
|Delta Air Lines Inc. (DAL)||9.8%||Domestic and international|
|United Airlines Holdings Inc. (UAL)||9.4%||Domestic and international|
|American Airlines Group Inc. (AAL)||8.3%||Domestic and international|
|Cargojet Inc. (CJT)||4.5%||Air cargo|
|Allegiant Travel Co. (ALGT)||4.2%||Low-cost carrier|
|Air Transport Services Group Inc. (ATSG)||4.0%||Air cargo|
|Alaska Air Group Inc. (ALK)||3.8%||Domestic airline|
|JetBlue Airways Corp. (JBLU)||3.8%||Low-cost carrier|
|Air Canada (ACDVF)||3.7%||Domestic and international|