Back to top

Image: Bigstock

Should You Invest in the U.S. Global Jets ETF (JETS)?

Read MoreHide Full Article

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.

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.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.

Index Details

The fund is sponsored by U.S. Global Investors. It has amassed assets over $1.09 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

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 Airlines Co (LUV - Free Report) accounts for about 10.88% of total assets, followed by United Airlines Holdings Inc (UAL - Free Report) and American Airlines Group Inc (AAL - Free Report) .

The top 10 holdings account for about 61.67% of total assets under management.

Performance and Risk

The ETF has added roughly 3.31% and was up about 49.15% so far this year and in the past one year (as of 01/20/2025), respectively. JETS has traded between $16.76 and $26.22 during this last 52-week period.

The ETF has a beta of 1.40 and standard deviation of 29.86% for the trailing three-year period, making it a high risk choice in the space. With about 58 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 $219.13 million in assets, iShares U.S. Transportation ETF has $760.83 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.

Published in