The fourth of July has come and gone, and with it, summer has really hit its stride. With the U.S. economy proving resilient and China having completed its quick reopening, tourism is back in the cards. That long-discussed recession that loomed over the U.S. has failed to materialize amid potentially record-breaking July 4th travel. Investors and advisors looking at that opportunity may want to consider how the travel ETF JRNY has performed in such an environment.
The ALPS Global Travel Beneficiaries ETF (JRNY) has returned 25.6% over the last year and 18.7% on a YTD basis. The ETF invests in a global consumer discretionary landscape and has returned 5% over the last month. JRNY has been sending a strong technical buy signal, particularly in the last few weeks. The travel ETF’s price has risen above both its 50 and 200-day Simple Moving Averages (SMA), with the former also well above the latter.
What’s driving a successful year for JRNY? JRNY tracks the S-Network Global Travel Index, designed to provide exposure to four segments including airlines & airports, hotels, casinos and cruises, rental and booking companies, and other beneficiaries. That includes names like Airbnb (ABNB) and Booking Holdings (BKNG) but also resilient megafirms like the Walt Disney Company (DIS). The ETF has seen its AUM grow by half a million dollars over the last month alone, meanwhile.
While some may look at travel and see a trend that has already regained most of the ground lost to the pandemic, there’s some way to go still. Inbound international travel to the United States, for example, hasn’t fully recovered. Neither inbound international travel nor domestic business travel will fully recover until 2025. That provides plenty of long-term growth potential in an intriguing ETF like JRNY that charges 65 basis points.
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