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

Sector ETF report for JETS

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This story originally appeared on Zacks

Launched on 04/30/2015, the U.S. Global Jets ETF (JETS) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.

- Zacks

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 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 3, placing it in top 19%.

Index Details

The fund is sponsored by U.S. Global Investors. It has amassed assets over $3.26 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

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.

It has a 12-month trailing dividend yield of 0.04%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Looking at individual holdings, Delta Air Lines Inc Del (DAL) accounts for about 9.95% of total assets, followed by United Airls Hldgs Inc (UAL) and Southwest Airls Co (LUV).

The top 10 holdings account for about 56.76% of total assets under management.

Performance and Risk

So far this year, JETS has added roughly 3.47%, and it's up approximately 34.31% in the last one year (as of 08/24/2021). During this past 52-week period, the fund has traded between $16.51 and $28.71.

The ETF has a beta of 1.59 and standard deviation of 43.71% 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 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.

First Trust NASDAQ Transportation ETF (FTXR) tracks Nasdaq US Smart Transportation Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index. First Trust NASDAQ Transportation ETF has $1.11 billion in assets, iShares U.S. Transportation ETF has $1.57 billion. FTXR has an expense ratio of 0.60% and IYT charges 0.42%.

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

 

United Airlines Holdings Inc (UAL): Free Stock Analysis Report

 

Southwest Airlines Co. (LUV): Free Stock Analysis Report

 

iShares U.S. Transportation ETF (IYT): ETF Research Reports

 

First Trust NASDAQ Transportation ETF (FTXR): ETF Research Reports

 

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