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

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.

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 8, placing it in top 50%.

Index Details

The fund is sponsored by U.S. Global Investors. It has amassed assets over $3.78 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

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.64%.

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, Southwest Airls Co (LUV) accounts for about 9.94% of total assets, followed by United Airls Hldgs Inc (UAL) and American Airls Group Inc (AAL).

The top 10 holdings account for about 56.86% of total assets under management.

Performance and Risk

The ETF has added roughly 1.84% so far this year and is down about -4.73% in the last one year (as of 02/14/2022). In that past 52-week period, it has traded between $19.38 and $28.71.

The ETF has a beta of 1.41 and standard deviation of 44.40% 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 a great 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 $1.13 billion in assets, iShares U.S. Transportation ETF has $1.53 billion. FTXR has an expense ratio of 0.60% and IYT charges 0.41%.

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
 
United Airlines Holdings Inc (UAL) : 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
 
First Trust NASDAQ Transportation ETF (FTXR): ETF Research Reports
 
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