Every morning, Bloomberg New releases a “Five Things You Need to Know to Start Your Day” snapshot with important news for investors. On December 3, 2020, the U.S. Global Jets ETF (JETS) was mentioned.
Read the feature by Cormac Mullen, cross-asset reporter and editor for Bloomberg News:
“The life story of a once-sleepy exchange-traded fund covering the global airline sector is an interesting example of how contrarian investors get to work. As my colleague Jan-Patrick Barnert noted Wednesday, the five-year old U.S. Global Jets ETF had struggled to attract more than $125 million in assets before this year and had assets of just $30 million when markets went into freefall in March. But as the financial world was panicking at the scale of the virus spread, what we might now call smart money was already at work. That month the fund’s price had halved before markets bottomed, yet cash was already pouring in, pushing total assets to nearly $200 million by March 23. That was just the beginning as investors piled into the recovery trade with assets soaring to almost $2.8 billion this week. The fund has surged 87% from a low in May following government agreements to provide aid and growing prospects for an early vaccine rollout. If the brave investors in March managed to average in at the right price, they have earned their place in the first class cabin by buying when it seemed to be the very last thing you should do.”
Mullen also created a chart with his annotations on the rapid growth in assets under management in the JETS ETF:
Past performance does not guarantee future results. Please click here for standardized performance.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. The expense ratio is 0.60%.
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.