The ALPS Global Travel Beneficiaries ETF (JRNY) outpaced its competitors and broader global markets last week.
The travel segment was lifted last week as the holiday season kicked off with stronger-than-expected jobs numbers and consumer spending, SS&C ALPS Advisors wrote in a December 5 insight.
JRNY jumped 3.28% in the one week trailing December 2, outpacing competing ETFs. The AdvisorShares Hotel ETF (BEDZ) gained 2.27%, the Defiance Hotel Airline and Cruise ETF (CRUZ) increased 2.07%, and the U.S. Global Jets ETF (JETS) rose 0.70%. The S&P 500 increased 1.13% on a price level basis during the same period.
According to ALPS, global travel continues to have its pulse on the state of the consumer with strong travel spending expected to persist into 2023, affirmed by Thanksgiving weekend seeing the highest foot traffic across U.S. airports since the pandemic began, per the U.S. Transportation Security Administration.
Online travel agency, Trip.com Group Ltd-ADR (TCOM US, 2.74% weight as of December 2), led JRNY’s diversified global travel holdings last week, soaring over 24% as the Shanghai company benefitted from renewed optimism regarding China’s potential reopening, according to ALPS.
JRNY’s other Chinese holdings surged in response to China’s government officials announcing plans to speed up COVID-19 vaccinations for the elderly, expected to reduce the economic pressure stemming from excessive COVID-19 restrictions, ALPS wrote. Tongcheng Travel Holdings (780 HK, 0.20% weight as of December 2), H World Group LTD (1179 HK, 0.67% weight as of December 2), and Galaxy Entertainment Group L (27 HK, 1.65% weight as of December 2) all rallied over 13% on the optimistic reopening news.
Delivery management software company, Grab Holdings LTD (GRAB US, 0.54% weight as of December 2), was a top performer within JRNY’s booking and rental agencies segment last week, rising nearly 7% on the completion of a repurchase of a $750 million term loan, removing the debt to shore-up its total debt load, ALPS wrote.
Several global travel beneficiaries segment names were lifted higher last week, highlighted by the technology solution provider, Sabre Corp (SABR US, 0.22% weight as of December 2), jumping 16.70% last week after the S&P 600 Small Cap Index announced that Sabre was slated to join the index.
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