Weighing in on the negative punch airline stocks have suffered since the COVID-19 outbreak, head trader at U.S. Global Investors Michael Matousek posed the questions: Are people going to stop going on vacation? Will businesses stop travel in perpetuity? Matousek says no, and that airlines are “oversold based on people’s fears.” Summer is just around the corner and once the outbreak subsides, Matousek believes that travel demand will slowly rise back to normal levels.
For investors bullish that the airline industry will recover after the pandemic subsides and travel picks up again, now might be the time for bargain hunting. Nathan Reiff, writing for Investopedia, says that airline stocks could be a good buy for those betting on a turnaround. As a way to get exposure to the airline industry, Reiff points out that “JETS is the best (and only) airline ETF.” JETS is referring to the U.S. Global Jets ETF, also known by its ticker symbol – JETS.
Reiff adds, “Unlike some other industries, which are tracked by several ETFs, there is currently only a single ETF specifically focused on airlines. The U.S. Global Jets ETF (JETS) is the only fund of its kind targeting the airline industry, making it the best (as well as the worst) performer.” At the time of the article, JETS was down 24.2 percent for the 12-month period.
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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.