Summer is unofficially upon us if you go by the Memorial Day kick-off definition. Plans are being made to travel, stay home, drive, eat, drink and generally just have fun. All this leisure time could well pay off for certain exchange traded funds (ETFs).
A recent study by USA Today showed that 18% of Americans will travel more this summer than they did last year and 37% will travel the same amount.
Airlines. Don Dion for TheStreet recently noted that while the Icelandic volcano eruption wreaked havoc for travelers, there are still plenty of people making vacation plans around the world, many of which involve traveling. The best part? Airlines report that traffic is up from last year and gas prices are nice and low right now. More than 90% of respondents in a survey performed by LowFares.com said they intend to fly to their travel destinations this summer. [5 ETFs That Are Holding Up.]
Claymore/NYSE Arca Airline (NYSEArca: FAA)
Europe. The euro is at four-year lows against the dollar. While it’s still stronger than the dollar, it’s no longer at $1.50-plus. That translates into some savings for tourists and it could entice them to visit the continent and spend.
- iShares MSCI EMU (NYSEArca: EZU)
Leisure Time. Whether it’s a staycation, a cruise or a weekend trip to a nearby city, Americans will be spending money on hotels, cruise vacations, dinners out and even accoutrements for a day at the beach.
- PowerShares Dynamic Leisure and Entertainment Portfolio (NYSEArca: PEJ)
- Consumer Staples Select Sector SPDR (NYSEArca: XLP)
Gas…Maybe. This one’s an unknown quantity. Gas prices are depressed now, but if demand creeps back up as we get deeper into summer, will the prices? We’re in hurricane season right now, too, so a big storm could send prices up in the blink of an eye. [Driving Season Kicks Off.]
- United States Gasoline (NYSEArca: UGA)
For more stories about ETFs, visit our ETF 101 category.
Tisha Guerrero contributed to this article.
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.