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Should You Invest in the U.S. Global Jets ETF (JETS)?
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If you're interested in broad exposure to the Industrials - Transportation/Shipping segment of the equity market, look no further than the U.S. Global Jets ETF (JETS - Free Report) , a passively managed exchange traded fund launched on 04/30/2015.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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 11, placing it in bottom 31%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $4.13 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 0.03%.
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, United Airls Hldgs Inc (UAL - Free Report) accounts for about 11.01% of total assets, followed by American Airls Group Inc (AAL - Free Report) and Southwest Airls Co (LUV - Free Report) .
The top 10 holdings account for about 65.22% of total assets under management.
Performance and Risk
So far this year, JETS has added about 26.45%, and was up about 78.49% in the last one year (as of 04/12/2021). During this past 52-week period, the fund has traded between $12 and $28.71.
The ETF has a beta of 1.66 and standard deviation of 43.08% for the trailing three-year period, making it a high risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.
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.
First Trust NASDAQ Transportation ETF (FTXR - Free Report) tracks Nasdaq US Smart Transportation Index and the iShares Transportation Average ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index. First Trust NASDAQ Transportation ETF has $1.11 billion in assets, iShares Transportation Average ETF has $2.10 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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Should You Invest in the U.S. Global Jets ETF (JETS)?
If you're interested in broad exposure to the Industrials - Transportation/Shipping segment of the equity market, look no further than the U.S. Global Jets ETF (JETS - Free Report) , a passively managed exchange traded fund launched on 04/30/2015.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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 11, placing it in bottom 31%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $4.13 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 0.03%.
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, United Airls Hldgs Inc (UAL - Free Report) accounts for about 11.01% of total assets, followed by American Airls Group Inc (AAL - Free Report) and Southwest Airls Co (LUV - Free Report) .
The top 10 holdings account for about 65.22% of total assets under management.
Performance and Risk
So far this year, JETS has added about 26.45%, and was up about 78.49% in the last one year (as of 04/12/2021). During this past 52-week period, the fund has traded between $12 and $28.71.
The ETF has a beta of 1.66 and standard deviation of 43.08% for the trailing three-year period, making it a high risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.
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.
First Trust NASDAQ Transportation ETF (FTXR - Free Report) tracks Nasdaq US Smart Transportation Index and the iShares Transportation Average ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index. First Trust NASDAQ Transportation ETF has $1.11 billion in assets, iShares Transportation Average ETF has $2.10 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.