Airline ETFs Why Buffett Changed His Mind About This Industry

The airline sector and related exchange traded fund are enjoying record profitability and additional tailwinds, with even investment guru Warren Buffett taking a second look at the industry.

On the upcoming webcast, Why Buffett Changed His Mind About Airlines, Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors, will take a bird’s-eye view of the airline industry and look at the emerging new business environment after years of consolidation.

“Airline stocks recently made a 52-week high and are still the least expensive industry within the S&P industrial sector,” Holmes told ETF Trends in a call.

The U.S. Global Jets ETF (NYSEArca: JETS), the lone dedicated airline ETF, surged 23.5% over the past three months and was up 13.4% year-to-date. Nevertheless, JETS is “still inexpensive,” Holmes said.

JETS currently trades at a 9.64 price-to-earnings and a 2.09 price-to-book. In contrast, the Industrials Select Sector SPDR (NYSEArca: XLI), which tries to reflect the performance of the S&P Industrial Sector Index, has a 19.32 P/E and a 3.78 P/B and the broader S&P 500 Index is trading at a 19.37 P/E and a 2.71 P/B.