The Best (and Only) Airline ETF

JETS is the best (and only) airline ETF

Best Airline ETFs. Gettiy Images.

For investors optimistic that the airline industry will keep rebounding from its pandemic-era travails, one airline ETF provides a way for broad exposure without tying their investment to a single carrier.

Key Takeaways

  • Airline stocks have underperformed the broader market over the past year.
  • The best (and only) airline ETF is JETS.
  • The fund's top holdings are United Airlines Holding Inc., American Airlines Group Inc., and Delta Air Lines Inc.

The only option when it comes to ETFs focused on the airline industry is the U.S. Global Jets ETF (JETS). The airline industry has underperformed compared to the S&P 500 Index in the past year. The benchmark S&P 500 Airlines Industry Index has fallen 24% compared with a 19% drop in the S&P 500 Index as of Nov. 3. Note that this index includes only U.S. companies and isn't a perfect metric for JETS, which has a global focus. JETS provides diversified exposure to the air travel industry, including aircraft manufacturers, airports, terminal services, and airlines.

Airline companies have staged a profit and revenue rebound amid a recovery of travel worldwide in the past year, though the industry's outlook is clouded by a slowing economy and high jet fuel prices.

Here's a closer look at JETS. All of the data below are also as of Nov. 3.

U.S. Global Jets ETF (JETS)

  • Performance Over One Year: -25.2%
  • Expense Ratio: 0.60%
  • Annual Dividend Yield: 0.04%
  • Three-Month Average Daily Volume: 6,359,474
  • Assets Under Management: $2.1 billion
  • Inception Date: April 28, 2015
  • Issuer: U.S. Global Investors

JETS is the only pure play airline ETF. As of Sept. 30, the date of its most recent fact sheet, this fund allocates three quarters of its portfolio to airlines and companies involved in the aviation industry (aircraft manufacturers, terminal services companies, and airports), with the remaining quarter invested in companies involved in transportation infrastructure, internet, transportation, and commercial services. More than three quarters of the fund's holdings are securities domiciled in the U.S., with smaller allocations to companies in Canada, Europe, and Asia.

Although JETS is a multi-cap ETF, it is weighted predominantly toward large-cap and mid-cap companies, small-cap companies make up just over 8% of the portfolio. Overall, its investment strategy is to track the U.S. Global Jets Index, although the fund doesn't guarantee 100% replication and may invest in securities not included in the index. Below, we look at the top 10 holdings in this fund.

Top JETS Holdings
Company Name (Ticker) Percentage of JETS Assets Description of Company
United Airlines Holdings Inc. (UAL) 11.4% Domestic and international carrier
American Airlines Group Inc. (AAL) 10.4% Domestic and international carrier
Delta Air Lines Inc. (DAL) 10.4% Domestic and international carrier
Southwest Airlines Co. (LUV) 10.0% Low-cost carrier
Air Canada (AC.TSE) 3.1% Canada-based domestic and international airline
Frontier Group Holdings Inc. (ULCC) 3.1% Low-cost carrier
JetBlue Airways Corp. (JBLU) 3.0% Lost-cost carrier
Alaska Air Group Inc. (ALK) 2.9% Domestic airline
Hawaiian Holdings Inc. (HA) 2.7% Low-cost carrier
Sun Country Airlines Holdings Inc. (SNCY) 2.6% Low-cost carrier

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Article Sources
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