Despite inflation remaining at decades-high levels, the rebounding travel industry has yet to see a pullback in demand from consumers.
The World Travel & Tourism Council (WTTC) announced its newest economic modeling earlier this year, projecting that U.S. travel and tourism could rebound strongly this year, reaching nearly $2 trillion in U.S. GDP contribution and surpassing pre-pandemic levels by 6.2%.
There are many ETFs available for investors that offer broad exposure to the rebounding travel industry. Three popular options are the ALPS Global Travel Beneficiaries ETF (JRNY), the SonicShares Airlines, Hotels, Cruis Lines ETF (TRYP), and the Defiance Hotel Airline and Cruise ETF (CRUZ).
JRNY is the most diversified of the three offerings and carries an expense ratio of 65 basis points, slightly higher than the category average of 62 basis points. The fund has garnered $8.7 million in assets under management since its inception in September 2021, according to VettaFi.
Made up of 76 holdings, JRNY’s top holdings currently include Booking Holdings (BKNG), Marriott International Inc. (MAR), LVMH Moet Hennessy Louis Vuitton (MC), and Hilton Worldwide (HLT), according to VettaFi.
TRYP has 63 holdings; the top five are VICI Properties Inc. (VICI), Host Hotels & Resorts Inc. (HST), Marriott International Inc. (MAR), Delta Air Lines Inc. (DAL), and Hilton Worldwide Holdings (HLT), according to VettaFi.
CRUZ is the cheapest in the segment, carrying an expense ratio of 45 basis points.
Composed of 56 holdings, CRUZ’s top holdings include Marriott International Inc. (MAR), Hilton Worldwide (HLT), Norwegian Cruise Line Holdings (NCLH), Royal Caribbean (RCL), and Delta Air Lines Inc. (DAL), according to VettaFi.
Consumer leisure demand persists, while current capacity issues seem to be temporary, making now a good time to enhance portfolios with higher exposure to travel and leisure.
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vettafi.com is owned by VettaFi, which also owns the index provider for JRNY. VettaFi is not the sponsor of JRNY, but VettaFi’s affiliate receives an index licensing fee from the ETF sponsor.