Because fuel is one of the largest input costs for airlines, when oil prices fall airlines have historically performed better, according to ETF Trends. Over the last three months as of October 28, however, CNBC notes that the NYSE Arca Airline Index (XAL) and the price of crude have curiously been moving in tandem.
This inverse relationship calls attention, then, to how the U.S. Global Jets ETF (JETS) has held its ground during this time period. “The ability of JETS and its holdings to rise in the face of rising oil prices, usually a major headwind, is undoubtedly impressive,” writes Brenton Garen of ETF Trends. “It is also encouraging because some market observers believe oil prices can continue climbing. Read the article on ETFTrends.com for the full analysis.READ THE ARTICLE FROM ETF TRENDS
Article summary written by U.S. Global Investors.
Past performance does not guarantee future results.