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As many as 113 million Americans are expected to travel during the Christmas holidays. This going to be one of the busiest holiday seasons probably in the last two decades, according to AAA, per Yahoo Finance. Dec 22 and Dec 30 are expected be the biggest travel days.
IATA had previously said that profits were "within reach" in 2023. For 2022, IATA narrowed its forecast for industry-wide losses to $6.9 billion from $9.7 billion. A “huge surge in travel” this holiday season is expected this holiday season, per economists, as quoted on Yahoo Finance.
According to Hopper's 2022 Holiday Travel Outlook released in September, the average price of a domestic plane ticket is $463 for Christmas travel. Christmas airfare is currently averaging 31% higher than in 2019 and 39% higher than last year. International airfare is currently $1,300 per ticket for Christmas, marking an increase of 26% from 2019 and 20% from 2018.
Travel ETFs will likely surge on optimism that consumers will continue flying this year during the holiday season despite higher fares. If this isn’t enough, Airlines will likely return to profitability in 2023, per IATA data. Big business is expected from Dec 22-30 (read: Time for Airlines ETF (JETS - Free Report) ?).
Against this backdrop, below, we highlight a few ETFs that can be played to cash in on Christmas travel.
The underlying U.S. Global Jets Index tracks the performance of Airline Companies across the globe with emphasis on domestic passenger airlines. The fund has an asset base of $2.06 billion. Delta Airlines (11%), Southwest Airlines (11%), American Airlines (10.5%) and United Airlines (9.98%) round out the top four spots. The fund charges 60 bps in fees.
The underlying S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index. The fund has an asset base of $415.3 million. Amid sectoral divisions, Trucking (39.17%), Airlines (26.1%) and Air Freight & Logistics (19.3%) take the top three spots. The fund charges 35 bps in fees.
The underlying S&P Transportation Select Industry FMC Capped Index (USD) measures the performance of companies from the Industrial Transportation, Airline and General Industrial Services industries of the U.S. equity market. The fund has an asset base of $697.0 million. IYT charges 39 bps in fees. Railroads (31.5%), Air Freight & Logistics (31.2%), Trucking (21.1%) and Airlines (14.7%) hold the top four spots in the geographical segmentation.
The underlying Prime Travel Technology Index NTR tracks the performance of globally exchange-listed equity securities or corresponding ADRs or GDRs engaged in Travel Technology Business which provides technology, via the internet & internet-connected devices such as mobile phones, to facilitate travel bookings & reservations, ride sharing & hailing, travel price comparison & travel advice.
The fund has $144.8 million in assets. Travel bookings & Reservations take about 55% of the fund, followed by travel price comparison (15.97%), travel advice (15.71%) and ride sharing & hailing (12.3%).
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Tap Christmas Travel With These ETFs
As many as 113 million Americans are expected to travel during the Christmas holidays. This going to be one of the busiest holiday seasons probably in the last two decades, according to AAA, per Yahoo Finance. Dec 22 and Dec 30 are expected be the biggest travel days.
IATA had previously said that profits were "within reach" in 2023. For 2022, IATA narrowed its forecast for industry-wide losses to $6.9 billion from $9.7 billion. A “huge surge in travel” this holiday season is expected this holiday season, per economists, as quoted on Yahoo Finance.
According to Hopper's 2022 Holiday Travel Outlook released in September, the average price of a domestic plane ticket is $463 for Christmas travel. Christmas airfare is currently averaging 31% higher than in 2019 and 39% higher than last year. International airfare is currently $1,300 per ticket for Christmas, marking an increase of 26% from 2019 and 20% from 2018.
Travel ETFs will likely surge on optimism that consumers will continue flying this year during the holiday season despite higher fares. If this isn’t enough, Airlines will likely return to profitability in 2023, per IATA data. Big business is expected from Dec 22-30 (read: Time for Airlines ETF (JETS - Free Report) ?).
Against this backdrop, below, we highlight a few ETFs that can be played to cash in on Christmas travel.
ETFs in Focus
U.S. Global Jets ETF (JETS - Free Report)
The underlying U.S. Global Jets Index tracks the performance of Airline Companies across the globe with emphasis on domestic passenger airlines. The fund has an asset base of $2.06 billion. Delta Airlines (11%), Southwest Airlines (11%), American Airlines (10.5%) and United Airlines (9.98%) round out the top four spots. The fund charges 60 bps in fees.
SPDR S&P Transportation ETF (XTN - Free Report)
The underlying S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index. The fund has an asset base of $415.3 million. Amid sectoral divisions, Trucking (39.17%), Airlines (26.1%) and Air Freight & Logistics (19.3%) take the top three spots. The fund charges 35 bps in fees.
iShares U.S. Transportation ETF (IYT - Free Report)
The underlying S&P Transportation Select Industry FMC Capped Index (USD) measures the performance of companies from the Industrial Transportation, Airline and General Industrial Services industries of the U.S. equity market. The fund has an asset base of $697.0 million. IYT charges 39 bps in fees. Railroads (31.5%), Air Freight & Logistics (31.2%), Trucking (21.1%) and Airlines (14.7%) hold the top four spots in the geographical segmentation.
ETFMG Travel Tech ETF (AWAY - Free Report)
The underlying Prime Travel Technology Index NTR tracks the performance of globally exchange-listed equity securities or corresponding ADRs or GDRs engaged in Travel Technology Business which provides technology, via the internet & internet-connected devices such as mobile phones, to facilitate travel bookings & reservations, ride sharing & hailing, travel price comparison & travel advice.
The fund has $144.8 million in assets. Travel bookings & Reservations take about 55% of the fund, followed by travel price comparison (15.97%), travel advice (15.71%) and ride sharing & hailing (12.3%).