In an interview with Stoyan Bojinov of ETF Database, Frank Holmes details the reasons why he was initially attracted to the idea of creating an airline-focused ETF and why he remains bullish on the industry today. He highlights free cash flow as airlines’ “magic factor.”
“Free cash flow is expected to reach a record [industry] high in 2015,” Frank says, “and if you look at individual companies’ free cash flow, three of our four biggest holdings… are expected to have yields above 10 percent this year.”
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