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Should You Invest in the U.S. Global Jets ETF (JETS)?
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Designed to provide broad exposure to the Industrials - Transportation/Shipping segment of the equity market, the U.S. Global Jets ETF (JETS - Free Report) 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.
Sector ETFs are also funds of convenience, offering many ways 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 10, placing it in bottom 38%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $1.13 billion, making it one of the average sized 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
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, United Airlines Holdings Inc (UAL - Free Report) accounts for about 12.99% of total assets, followed by Delta Air Lines Inc (DAL - Free Report) and Southwest Airlines Co (LUV - Free Report) .
The top 10 holdings account for about 61.36% of total assets under management.
Performance and Risk
The ETF has added about 4.52% so far this year and is down about -6.97% in the last one year (as of 07/17/2024). In that past 52-week period, it has traded between $14.74 and $22.
The ETF has a beta of 1.43 and standard deviation of 31.08% for the trailing three-year period, making it a high risk choice in the space. With about 59 holdings, it effectively diversifies company-specific risk.
Alternatives
U.S. Global Jets ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, JETS is an excellent option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
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 $174.68 million in assets, iShares U.S. Transportation ETF has $764.46 million. XTN has an expense ratio of 0.35% and IYT charges 0.40%.
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)?
Designed to provide broad exposure to the Industrials - Transportation/Shipping segment of the equity market, the U.S. Global Jets ETF (JETS - Free Report) 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.
Sector ETFs are also funds of convenience, offering many ways 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 10, placing it in bottom 38%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $1.13 billion, making it one of the average sized 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
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, United Airlines Holdings Inc (UAL - Free Report) accounts for about 12.99% of total assets, followed by Delta Air Lines Inc (DAL - Free Report) and Southwest Airlines Co (LUV - Free Report) .
The top 10 holdings account for about 61.36% of total assets under management.
Performance and Risk
The ETF has added about 4.52% so far this year and is down about -6.97% in the last one year (as of 07/17/2024). In that past 52-week period, it has traded between $14.74 and $22.
The ETF has a beta of 1.43 and standard deviation of 31.08% for the trailing three-year period, making it a high risk choice in the space. With about 59 holdings, it effectively diversifies company-specific risk.
Alternatives
U.S. Global Jets ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, JETS is an excellent option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
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 $174.68 million in assets, iShares U.S. Transportation ETF has $764.46 million. XTN has an expense ratio of 0.35% and IYT charges 0.40%.
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.