June 17, 2021—U.S. Global Investors, Inc. (Nasdaq: GROW) (“the Company”), a registered investment advisory firm that focuses on specialized markets around the world, is thrilled to announce its partnership with HANetf to launch Europe’s first and only global airlines industry ETF. The U.S. Global Jets UCITS ETF (JETS) launched today on the London Stock Exchange (LSE).
This move marks the second time this year that the Company has expanded its product line to international markets, the first case being in April when it launched its airlines ETF on the Mexican Stock Exchange (BMV).
Based in London, HANetf is Europe’s first independent full-service provider of Undertakings for Collective Investment in Transferable Securities (UCITS) ETFs, with over $2 billion in assets under management (AUM). Exchange-traded funds that qualify as UCITS can be registered in Europe and offered to investors throughout the European Union (EU) using standardized regulatory requirements. Once approved, they become exempt from regulation in individual countries.
The Company manages the U.S. Global Jets ETF (JETS), a U.S.-based exchange-traded fund that invests in not just carriers around the world but also airport services companies and aircraft manufacturers. As of June 1, AUM stood at $4.0 billion. Inflows into JETS began to soar in the first quarter of 2020 as investors bet on the eventual development and distribution of a vaccine against COVID-19.
A similar investment case prompted the idea of a European-based airlines ETF, according to Frank Holmes, the Company’s CEO and chief investment officer.
“Here in the U.S., leisure travel is steadily recovering as over half of American adults are now either fully or partially vaccinated against COVID-19. That’s compared to only around 40% of people in the EU who have received at least one dose,” Mr. Holmes says. “Therefore, we still believe there is great upside potential in terms of European commercial flight demand, especially now that EU officials have agreed that member states should start allowing fully vaccinated foreigners to visit.
“Like U.S. investors, Europeans are signaling that they want investment vehicles that seek to capitalize on the reopening of the global economy,” Mr. Holmes continues. “The JPMorgan Global Composite PMI, a leading indicator of economic business conditions, hit an incredible 15-year high in May, which points to strong growth going forward. I believe our airlines ETF, in collaboration with HANetf, will meet EU and United Kingdom investors’ demand for such a product that seeks to track the global economic reopening.”
The U.S. Global Jets UCITS ETFS will seek to acquire a number of European airlines-related stocks, including Ireland-based Ryanair, Hungary-based Wizz Air and Zurich Airport in Switzerland.
About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 50 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on specialized markets around the world. Headquartered in San Antonio, Texas, the Company provides money management and other services to U.S. Global Investors Funds and U.S. Global ETFs.
Forward-Looking Statements and Disclosure
Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a statutory and summary prospectus by visiting www.usglobaletfs.com. Read it carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the fund. Brokerage commissions will reduce returns. Because the fund concentrates its investments in specific industries, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The fund is non-diversified, meaning it may concentrate more of its assets in a smaller number of issuers than a diversified fund. The fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The fund may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the fund may diverge from that of the index. Because the fund may employ a representative sampling strategy and may also invest in securities that are not included in the index, the fund may experience tracking error to a greater extent than a fund that seeks to replicate an index. The fund is not actively managed and may be affected by a general decline in market segments related to the index. Airline companies may be adversely affected by a downturn in economic conditions that can result in decreased demand for air travel and may also be significantly affected by changes in fuel prices, labor relations and insurance costs.
This news release may include certain “forward-looking statements” including statements relating to revenues, expenses, and expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.
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.
U.S. Global’s U.S.-based ETFs are distributed by Quasar Distributors, LLC. U.S. Global Investors, Inc. is the investment adviser to the JETS and GOAU ETF. The U.S. Global Jets UCITS ETF is not available to U.S. investors.
All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice.
No assurance can be given that investments will be made into the companies discussed or that similar investments will be made.