ETF Spotlight on Claymore/NYSE Arca Airline (NYSEArca: FAA), part of a weekly series.
Assets: $41.6 million
Objective: Tracks the NYSE Arca Global Airline Index.
Holdings: The world’s largest and most recognizable airlines can be found in this fund, including United Airlines (NASDAQ: UAUA), Southwest Airlines (NYSE: LUV), Delta Airlines (NYSE: DAL) and JetBlue (NASDAQ: JBLU).
What You Should Know
- The United States makes up the bulk of this fund, with 70% of the total weight; Germany, Australia, Japan, Britain and Hong Kong and France are each 5% or less of the fund.
- This is the only ETF in which you can get a pure-play on the airline industry; iShares Dow Jones U.S. Transportation Average (NYSEArca: IYT) has some exposure to airlines, but it’s very small.
- The expense ratio is 0.65%
The Latest News
- FAA certainly took a hit in the broader market downturn, but it’s held up well in recent months. In the last six months, it’s been one of the top performers, up 26%. [Watch These ETFs for Vacation Season.]
- The airline industry has several factors working in its favor these days: gas prices are at three-month lows, oil prices have dipped and vacation season is under way. The economy isn’t on solid footing by any means, but more Americans are expected to travel this year as the pace of job cuts slows. [5 ETFs That Are Holding Up Well.]
- Continental (NYSE: CAL) most recently announced that traffic last month grew 3.7% from a year ago. While that’s an improvement, it’s worth noting that the industry is still coming off some lows. [Gas ETFs May Sputter This Summer.]
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.