Should You Invest in the U.S. Global Jets ETF (JETS)?
Designed to provide broad exposure to the Industrials - Transportation/Shipping segment of the equity market, the U.S. Global Jets ETF (JETS) is a passively managed exchange traded fund launched on 04/30/2015.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $1.94 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market. JETS seeks to match the performance of the U.S. Global Jets Index before fees and expenses.
The U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Southwest Airls Co (LUV) accounts for about 11.46% of total assets, followed by American Airls Group Inc (AAL) and Delta Air Lines Inc Del (DAL).
The top 10 holdings account for about 63.27% of total assets under management.
Performance and Risk
The ETF return is roughly 25.41% and it's up approximately 29.82% so far this year and in the past one year (as of 07/03/2023), respectively. JETS has traded between $15.01 and $21.42 during this last 52-week period.
The ETF has a beta of 1.38 and standard deviation of 34.91% for the trailing three-year period, making it a high risk choice in the space. With about 47 holdings, it has more concentrated exposure than peers.
Alternatives
U.S. Global Jets ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JETS is a sufficient option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
SPDR S&P Transportation ETF (XTN) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index. SPDR S&P Transportation ETF has $242.06 million in assets, iShares U.S. Transportation ETF has $974.30 million. XTN has an expense ratio of 0.35% and IYT charges 0.39%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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U.S. Global Jets ETF (JETS): ETF Research Reports
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
iShares U.S. Transportation ETF (IYT): ETF Research Reports
SPDR S&P Transportation ETF (XTN): ETF Research Reports
