U.S. markets close in 1 hour 26 minutes

Should You Buy Airline Stocks & ETF Upon Takeoff?

Neena Mishra
  • (1:00) - Short Term Outlook For Airlines: When Will People Be Comfortable Flying Again?
  • (10:10) - U.S. Global Jets ETF: JETS
  • (18:30) - What Kind Of Investor Does This ETF Work Best For?
  • (21:20) - Did Buffett Make A Mistake Selling Airlines?
  • (24:30) - The Benefits of Thematic Investing
  •     Podcast@Zacks.com

In this episode of ETF Spotlight, I speak with Frank Holmes, CEO of U.S. Global Investors. We talk about the outlook for airlines and the U.S. Global Jets ETF JETS, which has seen enormous investor interest in past few weeks.

Air travel has rebounded slightly over the past couple of weeks, but most people are still afraid of flying. Per NYT, airlines are burning $10 billion a month because planes are flying nearly empty. All airlines reported losses for the first quarter.

What lies ahead for the airline industry?

JETS is the only pure-play airline ETF available to investors currently. Its top holdings are Southwest Airlines LUV, American Airlines AAL, United Airlines UAL and Delta Airlines DAL.

The ETF has surged about 30% in the past two weeks, but it is still down 50% this year. Investors continue to pour money into the ETF. It has gathered more than $850 million since beginning of March.

Earlier this month, we learnt that legendary investor Warren Buffett sold his entire stake in United, American, Southwest and Delta Airlines. Did Buffett make a mistake in selling his airline stocks?

What else do investors need to know about investing in thematic ETFs like JETS and the U.S. Global GO GOLD And Precious Metal Miners ETF GOAU.

Make sure to be on the lookout for the next edition of ETF Spotlight and also make sure to subscribe! If you have any comments or questions, please email podcast@zacks.com.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
U.S. Global Jets ETF (JETS): ETF Research Reports
U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research