The dramatic rebound of airline stocks in May and June has many analysts scratching their heads: is this too good to be true? Or are airlines a key indicator of a V-shaped recovery?
On the upcoming webcast, Airline ETF Sees Liftoff on Stock Rebound, Frank Holmes, CEO and Chief Investment Officer, U.S. Global Investors, will consider the impact of COVID-19 on global airline stocks and the potential long-term benefits of entering the market during a recovery period.
Investors can look to the U.S. Global Jets ETF (NYSEArca: JETS), the lone ETF dedicated to airline stocks, to access the growing global airline industry. The ETF surged 34.8% over the past month, but it is still down 42.7% year-to-date.
JETS follows the U.S. Global Jets Index, which uses fundamental screens to select airline companies, with an emphasis on domestic carriers, along with global aircraft manufacturers and airport companies.
Many have turned to JETS as a way to bet on the broad recovery of the airline industry that has been among the hardest hit by the coronavirus pandemic after global governments halted air travel in a bid to contain the outbreak. The play has also been a way for investors to bet against Warren Buffett, Berkshire Hathaway Inc.’s chief executive, who sold major stakes in the four biggest U.S. carriers earlier this year.
JETS has also become a popular way for many retail investors to gain diversified exposure to the airline industry as opposed to betting on single airliners. According to the Robinhood trading platform data, the number of JETS investors has increased to almost 28,000 from around 360 at the start of March. JETS saw significant inflows from deep-value investors and institutional investors like hedge funds as well. These inflows have accelerated as the outlook for an effective COVID-19 vaccine has become more promising, pushing airline stocks higher.
Financial advisors who are interested in learning more about the airline industry can register for the Monday, June 22 webcast here.