With June now here, summer has truly arrived – in the northern hemisphere, at least. That means travel for countless tourists in the United States and around the world. For investors looking to address that summer swing, travel stocks present an intriguing opportunity. The ALPS Global Travel Beneficiaries ETF (JRNY) offers one notable route into the space.
See more: “Travel ETFs Hold On To Strong YTD Returns”
Why travel stocks? Investors already are taking notice of the change in seasons. All but two of the top 25 holdings in JRNY saw price increases on Friday, June 2. All three of the top holdings, Uber (UBER), LVM Moet Hennessy Louis Vuitton (LVMHF), and Marriot International (MAR) also grew over the last five days.
Travel Stocks Demand
Demand for flights and travel has skyrocketed as travel broadly resumed with COVID-19 vaccinations. That’s led to much higher prices, but air travel demand remains strong. Travel spending remained on par with 2022 levels as of April, as well, according to the U.S. Travel Association. What’s more, overseas travel still has some ways to go to reach 2019 levels.
Summer can help meet those pre-pandemic levels. According to Deloitte, half of Americans plan to take a vacation involving paid lodging this summer. All of these factors contribute to the case for travel stocks in an ETF like JRNY. JRNY charges 65 basis points and its performance has mostly outdone the SPDR S&P 500 ETF Trust (SPY) over most of 2023.
JRNY charges 65 basis points to track the S-Network Global Travel Index. As mentioned above, it weights names like UBER, LVMHF, and MAR as its three-largest stocks at 5.5%, 4.7%, and 4.7% respectively. JRNY has also seen its 50-day Simple Moving Average (SMA) sit above its 200-day SMA since February, a powerful indicator of momentum.
For more news, information, and analysis, visit the ETF Building Blocks Channel.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for JRNY, for which it receives an index licensing fee. However, JRNY is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of JRNY.
