We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ETFs to Ride High With Busiest Thanksgiving Travel
Read MoreHide Full Article
With travel restrictions lifted and more people comfortably taking public transportation again, a higher number of Americans are gearing up for Thanksgiving travel this time.
An increase in travel demand should boost revenues and profitability for the travel and tourism industry, thereby leading to higher share prices. Investors shouldn’t miss this opportunity and could tap this trend through ETFs that stand to profit big time from the upbeat Thanksgiving travel trend.
Travel service provider American Automobile Association (AAA) expects 2022 to be the third-busiest Thanksgiving travel season in the United States over the last two decades. About 54.6 million people will travel 50 miles or more from home this Thanksgiving (the five-day period from Nov 23-27). This is up 1.5% from last year and represents 98% of the pre-pandemic volumes.
About 49 million (up 0.4% from the last year) will go on road trips, 4.5 million (up 8%) will fly, and the remaining 1.4 million (up 23%) will travel by train, bus or cruise. The United States lifted the travel restrictions fully, cheering up those making travel plans for this holiday season (read: 5 ETFs to Shower Solid Gains This Thanksgiving Week).
Although 90% of Americans are expected to hit the roads, motorists have to pay the highest gas prices on record, per GasBuddy. This is especially true as gasoline prices are surging this year and the national average price of gasoline is projected to hit $3.68 per gallon on Thanksgiving Day, up about 20 cents higher than the last year. AAA also revealed that average hotel booking prices across the U.S. have increased in 2022 ahead of Thanksgiving. The average cost of a hotel stay is up 8% higher than the last year.
Another report from the U.S. airlines group, Airlines for America (A4A), shows that 24.6 million passengers will travel globally during the 12-day (Nov 21 -Dec 2) Thanksgiving air-travel period, a slight increase from 2021. Airlines are accommodating the increase in demand by adding seats.
U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world by tracking the U.S. Global Jets Index. The product holds 49 securities and charges 60 bps in annual fees.
U.S. Global Jets ETF has gathered $2.2 billion in its asset base while sees a heavy trading volume of nearly 6.6 million shares a day. JETS has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
AdvisorShares Hotel ETF is the actively managed and only ETF investing exclusively in global hotel and travel-related services companies. It holds 23 stocks in its basket that are pretty spread across components.
AdvisorShares Hotel ETF charges 99 bps in annual fees and trades in an average daily volume of 2,000 shares. It has amassed $4.7 million in its asset base.
ETFMG Travel Tech ETF is the first ETF that offers direct access to the technology-focused global travel and tourism industry. It follows the Prime Travel Technology Index, charging investors 75 bps in annual fees. ETFMG Travel Tech ETF holds 31 stocks in its basket, with travel bookings & reservations companies accounting for 55% of assets, followed by a 16% share in travel price comparison firms (read: 5 Sector ETFs That Could Flourish in November).
ETFMG Travel Tech ETF has accumulated $150.2 million in its asset base and trades in an average daily volume of 82,000 shares.
Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report)
Defiance Hotel, Airline, and Cruise ETF tracks the BlueStar Global Hotels, Airlines, and Cruises Index, which measures the performance of globally listed companies primarily engaged in the travel and tourism industries. Holding 56 stocks in its basket, American firms make up 51.7% of the portfolio, while Panama, the United Kingdom and Japan round off the next three with single-digit exposure each.
Defiance Hotel, Airline, and Cruise ETF has gathered around $39 million in its asset base and charges 45 bps in annual fees. Volume is lower as it exchanges around 20,000 shares a day on average.
ALPS Global Travel Beneficiaries ETF provides diversified exposure to the global travel industry by tracking the S-Network Global Travel Index. The fund invests in 78 companies engaged in booking and rental agencies, airlines and airport services, hotels, casinos and cruise lines, along with travel-related companies identified through machine learning algorithms, such as luxury retail, entertainment, leisure, food and beverage and payment processing vendors (read: Why Should You Buy Consumer ETFs Now?).
ALPS Global Travel Beneficiaries ETF has accumulated $7.6 million in its asset base and charges 65 bps in annual fees. JRNY trades in an average daily volume of 5,000 shares.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ETFs to Ride High With Busiest Thanksgiving Travel
With travel restrictions lifted and more people comfortably taking public transportation again, a higher number of Americans are gearing up for Thanksgiving travel this time.
An increase in travel demand should boost revenues and profitability for the travel and tourism industry, thereby leading to higher share prices. Investors shouldn’t miss this opportunity and could tap this trend through ETFs that stand to profit big time from the upbeat Thanksgiving travel trend.
As such, U.S. Global Jets ETF (JETS - Free Report) , AdvisorShares Hotel ETF (BEDZ - Free Report) , ETFMG Travel Tech ETF (AWAY - Free Report) , Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report) and ALPS Global Travel Beneficiaries ETF (JRNY - Free Report) look intriguing picks.
Solid Travel Trends
Travel service provider American Automobile Association (AAA) expects 2022 to be the third-busiest Thanksgiving travel season in the United States over the last two decades. About 54.6 million people will travel 50 miles or more from home this Thanksgiving (the five-day period from Nov 23-27). This is up 1.5% from last year and represents 98% of the pre-pandemic volumes.
About 49 million (up 0.4% from the last year) will go on road trips, 4.5 million (up 8%) will fly, and the remaining 1.4 million (up 23%) will travel by train, bus or cruise. The United States lifted the travel restrictions fully, cheering up those making travel plans for this holiday season (read: 5 ETFs to Shower Solid Gains This Thanksgiving Week).
Although 90% of Americans are expected to hit the roads, motorists have to pay the highest gas prices on record, per GasBuddy. This is especially true as gasoline prices are surging this year and the national average price of gasoline is projected to hit $3.68 per gallon on Thanksgiving Day, up about 20 cents higher than the last year. AAA also revealed that average hotel booking prices across the U.S. have increased in 2022 ahead of Thanksgiving. The average cost of a hotel stay is up 8% higher than the last year.
Another report from the U.S. airlines group, Airlines for America (A4A), shows that 24.6 million passengers will travel globally during the 12-day (Nov 21 -Dec 2) Thanksgiving air-travel period, a slight increase from 2021. Airlines are accommodating the increase in demand by adding seats.
Let’s delve deeper into the above-mentioned ETFs:
U.S. Global Jets ETF (JETS - Free Report)
U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world by tracking the U.S. Global Jets Index. The product holds 49 securities and charges 60 bps in annual fees.
U.S. Global Jets ETF has gathered $2.2 billion in its asset base while sees a heavy trading volume of nearly 6.6 million shares a day. JETS has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
AdvisorShares Hotel ETF (BEDZ - Free Report)
AdvisorShares Hotel ETF is the actively managed and only ETF investing exclusively in global hotel and travel-related services companies. It holds 23 stocks in its basket that are pretty spread across components.
AdvisorShares Hotel ETF charges 99 bps in annual fees and trades in an average daily volume of 2,000 shares. It has amassed $4.7 million in its asset base.
ETFMG Travel Tech ETF (AWAY - Free Report)
ETFMG Travel Tech ETF is the first ETF that offers direct access to the technology-focused global travel and tourism industry. It follows the Prime Travel Technology Index, charging investors 75 bps in annual fees. ETFMG Travel Tech ETF holds 31 stocks in its basket, with travel bookings & reservations companies accounting for 55% of assets, followed by a 16% share in travel price comparison firms (read: 5 Sector ETFs That Could Flourish in November).
ETFMG Travel Tech ETF has accumulated $150.2 million in its asset base and trades in an average daily volume of 82,000 shares.
Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report)
Defiance Hotel, Airline, and Cruise ETF tracks the BlueStar Global Hotels, Airlines, and Cruises Index, which measures the performance of globally listed companies primarily engaged in the travel and tourism industries. Holding 56 stocks in its basket, American firms make up 51.7% of the portfolio, while Panama, the United Kingdom and Japan round off the next three with single-digit exposure each.
Defiance Hotel, Airline, and Cruise ETF has gathered around $39 million in its asset base and charges 45 bps in annual fees. Volume is lower as it exchanges around 20,000 shares a day on average.
ALPS Global Travel Beneficiaries ETF (JRNY - Free Report)
ALPS Global Travel Beneficiaries ETF provides diversified exposure to the global travel industry by tracking the S-Network Global Travel Index. The fund invests in 78 companies engaged in booking and rental agencies, airlines and airport services, hotels, casinos and cruise lines, along with travel-related companies identified through machine learning algorithms, such as luxury retail, entertainment, leisure, food and beverage and payment processing vendors (read: Why Should You Buy Consumer ETFs Now?).
ALPS Global Travel Beneficiaries ETF has accumulated $7.6 million in its asset base and charges 65 bps in annual fees. JRNY trades in an average daily volume of 5,000 shares.