More investors are betting on airline stocks, as evidenced by strong inflows into the only dedicated airline ETF on the market. The U.S. Global Jets ETF (JETS) had $52 million in assets as of December 31, 2019 and crossed above the $1 billion asset mark just a few months later on June 2, 2020.
The Wall Street Journal (WSJ) profiled JETS and spoke with investors who jumped into the space. CEO Frank Holmes said “it was just unprecedented volume explosion,” starting in March when airline stocks sunk due to the halt in global travel. Mischa Frankl-Duval, a WSJ reporter, wrote that “the ETF allows investors to bet on the broad recovery of an industry that has been among the hardest hit by the coronavirus pandemic.” According to Robintrack, which follows the popularity of stocks on investment platform Robinhood, the number of accounts invested in JETS was around 28,000 as of the end of May.
Learn more about how the fund hit $1 billion here.
U.S. Global Investors has authored and is responsible for the summary on this page. All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice.
The outbreak of the COVID-19 pandemic and the resulting actions to control or slow the spread has had a significant detrimental effect on the global and domestic economies, financial markets and industries, including airlines. U.S. Global Investors continues to monitor the impact of COVID-19, but it is too early to determine the full impact this virus may have on commercial aviation. Should this emerging macro-economic risk continue for an extended period, there could be an adverse material financial impact to the U.S. Global Jets ETF.