The busy summer travel season is here, and forecasts show this year could set records for airline travel. With the shifting consumer trends, investors can utilize targeted exchange traded funds to capture potential growth ahead.
On the upcoming webcast (available for CE Credit), Why You Should Consider Investing in the Busy Summer Travel Season, Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors, will look at the increased summertime activity and potential strategies investors can take to capitalize on the shifts.
A record 234 million passengers are expected to fly on U.S. airlines this summer, according to Airlines for America. This comes thanks to a steadily improving economy, affordable airfare and more. These are welcome tailwinds for the airlines which have transformed their businesses from near bankruptcy to successful profitability in recent years.
Investors interested in flying with the airline industry can consider the U.S. Global Jets ETF (NYSEArca:JETS), the lone ETF dedicated to airline stocks.
There are encouraging fundamental factors for airlines, including low oil prices. Fuel is the largest input cost for airlines. The improving U.S. economy could encourage more business and leisure travel and airlines are generating impressive amounts of cash.
Along with lower oil prices, airline stocks look attractive in their own right. For instance, income-oriented investors may notice that airline stocks have seen improved dividend-yield growth. Additionally, the sector shows relatively cheap valuations.