Within the investment vernacular, you hear the terms “alpha” and “beta” with regard to strategies, but today belonged to “delta” as Delta Air Lines outperformed expectations, lifting up the US Global Jets ETF (NYSEArca: JETS).
Delta Air Lines posted a $1.77 earnings per share figure, which beat initial forecasts by a nickel. In addition, it posted a second quarter revenue of $11.78 billion, beating consensus estimates of $11.73 billion.
Meanwhile, JETS, the ETF with the largest percentage allocation towards Delta Air Lines at 11.76% benefitted from the rise, gaining 1.73 percent thirty minutes before the close of Thursday’s trading session. JETS tracks the performance of the U.S. Global Jets Index and relies on a passive management strategy that invests in U.S. and international passenger airlines, aircraft manufacturers, airports, and terminal services companies across the globe.
It’s a welcome breath of fresh air for JETS, which is down 11.26% year-to-date according to Yahoo! Finance performance numbers. Furthermore, the price of JETS has been oscillating below its 200-day moving average since the end of May.