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 bargain hunt. The U.S. airline industry includes major carriers such as American Airlines (AAL), Delta Air Lines (DAL) and Southwest Airlines (LUV).
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. While the fund has dropped more than 50% in the first quarter of 2020, investors betting on a turnaround for air travel may find things to like. All numbers as of April 16, 2020.
- Performance over 1 year: -48.91%
- Expense Ratio: 0.60%
- Annual Dividend: $0.39
- 3-Month Average Daily Volume: 1.35 million
- Assets Under Management: $436 million
- Inception Date: April 28, 2015
- Issuing Company: U.S. Global Investors
JETS is the only pure-play airline ETF available. 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 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 (LUV)||12.61%||Low-cost carrier|
|American Airlines Group (AAL)||12.2%||Domestic and international|
|United Airlines Holdings (UAL)||10.07%||Domestic and international|
|Delta Air Lines (DAL)||9.38%||Domestic and international|
|Air Transport Services Group (ATSG)||5.26%||Air cargo|
|SkyWest (SKYW)||4.18%||Domestic airline|
|General Dynamics (GD)||3.99%||Manufacturer|
|Alaska Air Group (ALK)||3.82%||Domestic airline|
|JetBlue Airways (JBLU)||3.74%||Low-cost carrier|
|Spirit Airlines (SAVE)||3.55%||Low-cost carrier|
As of April 16, 2020. Source: U.S. Global Investors.
ETFDB.com. "ETF Screener," Accessed March 12, 2020.
U.S. Global Investors. "U.S. Global Jets ETF - Performance." Accessed April 17, 2020.
U.S. Global Investors. "U.S. Global Jets ETF - Overview." Accessed April 17, 2020.
Nasdaq. "JETS Dividend History." Accessed April 17, 2020.
ETFDB.com. "U.S. Global Jets ETF." Accessed April 17, 2020.
U.S. Global Investors. "U.S. Global Jets ETF - Holdings." Accessed April 17, 2020.