Noting the extreme volatility of airline stocks since the global pandemic decimated air travel, Todd Shriber of InvestorPlace highlights that the U.S. Global Jets ETF (JETS) – the only airline ETF on the market – can offer investors upside if they can handle the turbulence. Shriber calls JETS “one of the more interesting stories from the world of exchange-traded funds this year” as JETS lost nearly two-thirds of its value but saw a more than 30-fold increase in assets under management during the height of the pandemic selloff.
An excerpt from the InvestorPlace article:
“This year, JETS is a contrarian idea and that’s putting things mildly. Even with the financial assistance from the federal government, airlines are scrapping routes and, in some cases, eliminating staff to conserve capital.
Those are not signs of a healthy industry. Investors that are actively following individual airline names this year know that. It’s likely some of those investors are also getting acquainted with analysts’ expectations that the rosiest timeline for the industry looking its 2019 self again is 2022. But it’s more likely to be 2023.
Still, there’s something to the JETS contrarian story. Passenger air travel in the U.S. isn’t all the way back from the April lows, but on Aug. 30, the Transportation Safety Administration (TSA) screened 807,000 fliers.”
Shriber ends with sharing two near-term catalysts that could provide fuel for airline equities: strong Labor Day travel numbers and progress on a coronavirus vaccine. Explore the JETS ETF by clicking the button below!
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.