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. JETS is trading at a 10.0 price-to-earnings and a 2.2 price-to-book, compared to the S&P 500’s 16.9 P/E and a 2.8 P/B.
Top holdings include United Continental (NYSE:UAL) 12.1%, Delta Airlines (NYSE:DAL) 11.8%, Southwest Airlines (NYSE:LUV) 11.6%, American Airlines Group (NYSE:AAL) 11.4% and Allegiant Travel (NYSE:ALGT) 4.0%. Airlines make up the lion’s share of the portfolio at 86.5%, and the ETF includes some other sub-sectors like aerospace & defense 7.9%, manufacturing 3.0%, software 1.0% and transportation infrastructure 1.0%.
The JETS ETF also includes some foreign exposure. While the U.S. makes up 80.4% of the fund’s portfolio, the ETF also holds UK 3.0%, Canada 2.0%, Israel 2.0% and Turkey 1.0%, among others.
Financial advisors who are interested in learning more about the airline industry can register for the Thursday, April 12 webcast here.