A Dynamic Approach for ETF Investors to Access the Airline Industry

“The way that we construct JETS; it all starts with the heaviest weighting is the big four domestic carriers, so Southwest, United, Delta and American,” Holly Schoenfeldt, Marketing & Public Relations Manager for U.S. Global Investors, said at the 2018 Morningstar Investment Conference. “It also has other companies like Boeing in it, so it’s kind of a mixture of global airline names, not just passenger airlines.”

JETS’ Top Holdings

Top holdings include United Continental (NYSE:UAL) 12.7%, Delta Airlines (NYSE:DAL) 11.8%, Southwest Airlines (NYSE:LUV) 12.1%, American Airlines Group (NYSE:AAL) 11.2% and Spirit Airlines (NYSE: SAVE) 4.4%. Airlines make up the lion’s share of the portfolio at 87.6%, and the ETF includes some other sub-sectors like aerospace & defense 7.0%, manufacturing 3.0% and transportation infrastructure 2.0%.

The JETS ETF also includes some foreign exposure. While the U.S. makes up 79.5% of the fund’s portfolio, the ETF also holds Turkey 3.0%, UK 3.0%, Canada 2.0% and France 2.0%, among others.

“It’s a really, a dynamic rules-based ETF that gives you exposure to more than just domestic but global, and more than just airlines but the related industry,” Schoenfeldt added.

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