Airline stocks have been in the spotlight after the TSA reported the busiest travel day in U.S. history following Thanksgiving.
Designed to provide broad exposure to the Industrials - Transportation/Shipping segment of the equity market, the U.S. Global Jets ETF (JETS) is a passively managed exchange traded fund launched on April 30, 2015.
Record Thanksgiving travel and rebounding bookings are expected to lift airline ETFs like JETS as industry momentum accelerates in the post-shutdown period.
The recent announcement by the Federal Aviation Administration (“FAA”) to reduce flight capacity at 40 major U.S. airports has sent ripples through the commercial aviation sector, causing major airline stocks like United Airlines ( UAL ), Delta Air Lines ( DAL ), and American Airlines ( AAL ) to slide on the bourses yesterday. This decision mandates progressive cuts, beginning with a 4% reduction and ramping up to 10% by mid-November to address safety concerns amid a prolonged government shutdown that has left air traffic controllers unpaid and air traffic control operations strained.
Launched on April 30, 2015, the U.S. Global Jets ETF (JETS) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
As expected, airline stocks have performed poorly over the past four years, struggling with margin pressures as airlines fail to pass rising costs onto ticket prices. With the fallout of Spirit Airlines and lower labor and fuel inflation, airlines may be verging on greater deflationary issues, particularly regarding economy class tickets. The "economy class" American is not in a great financial situation today, with stagnant median annual income, rising consumer debt service, and ongoing living cost growth.
Looking for broad exposure to the Industrials - Transportation/Shipping segment of the equity market? You should consider the U.S. Global Jets ETF (JETS), a passively managed exchange traded fund launched on April 30, 2015.
I reiterate a hold rating on JETS, citing decent valuation but significant technical resistance and lackluster YTD performance among top holdings. Despite strong TSA checkpoint numbers and recent share momentum, airline stocks remain volatile and cyclical, with JETS showing elevated risk metrics. JETS trades at a discount to the S&P 500 and leans toward value and SMID caps, but faces macroeconomic and seasonal headwinds through September.
Delta's upbeat forecast lifts JETS 7.3% and AIRL 7.9%, reviving airline ETFs after a rough stretch for the sector.
Launched on 04/30/2015, the U.S. Global Jets ETF (JETS) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
The U.S. Global Jets ETF diversifies its holdings beyond U.S.-based air carriers.
If you're interested in broad exposure to the Industrials - Transportation/Shipping segment of the equity market, look no further than the U.S. Global Jets ETF (JETS), a passively managed exchange traded fund launched on 04/30/2015.