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JETS follows the U.S. Global Jets Index, which uses fundamental screens to select airline companies, with an emphasis on domestic carriers, along with global aircraft manufacturers and airport companies.
Top holdings include American Airlines Group (NYSE:AAL) 12.7%, United Continental (NYSE:UAL) 12.0%, Delta Airlines (NYSE:DAL) 11.8%, Southwest Airlines (NYSE:LUV) 11.5% and Allegiant Travel (NYSE:ALGT) 4.0%.
The JETS ETF also includes foreign exposure. While the U.S. makes up 79.9% of the fund’s portfolio, the ETF also holds UK 3.0%, China 2.0%, Canada 2.0%, Israel 1.1% and Switzerland 1.0%, among others.
“With JETS, investors gain exposure not just to domestic airlines, but to international airlines as well,” according to U.S. Global. “This is crucial, as the emergence and growth of the middle class in the developing world has arguably been one of the most important factors in the worldwide rise in air travel demand. Now, largely because of this burgeoning global middle class, airlines are expected to post a collective profit of $25 billion in 2015, up 25% from $20 billion in 2014. Also, JETS doesn’t just offer exposure to airlines, but to the industries that support them as well, including aircraft manufacturers, airports, and terminal service industries.”
Financial advisors who are interested in learning more about summertime investments can register for the Thursday, July 20 webcast here.