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Should You Invest in the U.S. Global Jets ETF (JETS)?
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Launched on 04/30/2015, the U.S. Global Jets ETF (JETS - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
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 8, placing it in top 50%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $1.99 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
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Southwest Airls Co (LUV - Free Report) accounts for about 9.42% of total assets, followed by Delta Air Lines Inc Del (DAL - Free Report) and American Airls Group Inc (AAL - Free Report) .
The top 10 holdings account for about 56.14% of total assets under management.
Performance and Risk
The ETF has lost about -21.87% so far this year and is down about -20.29% in the last one year (as of 12/28/2022). In that past 52-week period, it has traded between $15.01 and $23.43.
The ETF has a beta of 1.33 and standard deviation of 48.37% for the trailing three-year period, making it a high risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
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 - Free Report) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index. SPDR S&P Transportation ETF has $395.69 million in assets, iShares U.S. Transportation ETF has $669.10 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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Should You Invest in the U.S. Global Jets ETF (JETS)?
Launched on 04/30/2015, the U.S. Global Jets ETF (JETS - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
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 8, placing it in top 50%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $1.99 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
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Southwest Airls Co (LUV - Free Report) accounts for about 9.42% of total assets, followed by Delta Air Lines Inc Del (DAL - Free Report) and American Airls Group Inc (AAL - Free Report) .
The top 10 holdings account for about 56.14% of total assets under management.
Performance and Risk
The ETF has lost about -21.87% so far this year and is down about -20.29% in the last one year (as of 12/28/2022). In that past 52-week period, it has traded between $15.01 and $23.43.
The ETF has a beta of 1.33 and standard deviation of 48.37% for the trailing three-year period, making it a high risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
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 - Free Report) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index. SPDR S&P Transportation ETF has $395.69 million in assets, iShares U.S. Transportation ETF has $669.10 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.