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5 ETFs Set to Soar on Busiest Memorial Day in Two Decades
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This Memorial Day holiday weekend is likely to see record-breaking travelers hitting the road and taking to the skies. According to travel service provider American Automobile Association (“AAA”), this summer travel season will be the busiest in nearly two decades.
An increase in travel demand should boost revenues and profitability for the travel and tourism industry, thereby leading to higher share prices. Investors can tap this trend through ETFs that stand to profit big time from an upbeat Memorial Day travel trend. ETFMG Travel Tech ETF (AWAY - Free Report) , Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report) , ALPS Global Travel Beneficiaries ETF (JRNY - Free Report) , AdvisorShares Hotel ETF (BEDZ - Free Report) and Themes Airlines ETF (AIRL - Free Report) look like intriguing picks.
Busy Travel Trends
According to AAA, about 44 million Americans will travel 50 miles (80 km) or more over the Memorial Day weekend (May 23-27), up 4% from last year. This would represent the second busiest Memorial Day weekend ever. Of them, a record 38.4 million are expected to go on a road trip, 3.5 million would fly and 2 million would travel by train and other modes (including buses and cruises).
Road travel is expected to hit the highest level since AAA began tracking data in 2000 and increase 4% from the last year, driven by a lower pump price. The national average for gas prices declined for the fourth consecutive week ahead of Memorial Day weekend and is expected to remain in the mid-$3 range for most of the summer, per GasBuddy (see: all the Consumer Discretionary ETFs here).
According to Hopper data, car rentals for the long weekend will cost $43 on average per day, roughly unchanged from last year. The demand for rentals will be highest in Atlanta, GA, Boston, MA, Las Vegas, NV and Orlando, FL, with most renters scheduled to pick up their cars on May 23 and 24.
This Memorial Day weekend will also be the most crowded at airports since 2005. Air ticket fares are comparable to last year, with just a 1-2% increase in prices for domestic flights. Hotel stays are averaging $212 per night this year, per Hopper data. This is slightly higher than the average prices for the summer. Meanwhile, the Federal Aviation Administration expects this Memorial Day weekend to be the busiest for air travel in more than a decade. It projects more than 53,000 flights on Thursday and 50,000 on Friday.
Travelers are seeking theme parks and entertainment venues in Orlando, New York, Las Vegas and Southern California. Seattle, WA, Anchorage, AK and Vancouver are the top destinations because of the popularity of Alaska cruises this time of the year. Florida beaches and cruise ports will also be packed. European cities dominate the international list, according to AAA.
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 American firms accounting for 36%, followed by 13% share each in Australia and the United Kingdom (read: Travel ETF (AWAY - Free Report) Hits a New 52-Week High).
ETFMG Travel Tech ETF has accumulated $86.8 million in its asset base and trades in an average daily volume of 14,000 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 passenger airline, hotel and cruise industries. Holding 64 stocks in its basket, American firms make up 47.6% of the portfolio, while Liberia, the United Kingdom and Panama round off the next three with single-digit exposure each.
Defiance Hotel, Airline, and Cruise ETF has gathered around $32.3 million in its asset base and charges 45 bps in annual fees. Volume is lower as it exchanges around 12,000 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 76 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.
ALPS Global Travel Beneficiaries ETF has accumulated $6.3 million in its asset base and charges 65 bps in annual fees. JRNY trades in an average daily volume of 1,000 shares (read: Focus on Disney ETFs Post Q2 Earnings).
AdvisorShares Hotel ETF is actively managed and provides exposure to the global hotel and lodging industry as well as its related services. It holds 27 stocks in its basket, with American firms accounting for about 85% share in the basket.
AdvisorShares Hotel ETF charges 99 bps in annual fees and trades in an average daily volume of 1,000 shares. It has amassed $3.4 million in its asset base.
Themes Airlines ETF offers exposure to the largest 31 airline companies by market capitalization by tracking the Solactive Airlines Index. American firms make up the largest share in the basket at 47.8%, followed by United Kingdom firms with 11.8% share.
Themes Airlines ETF has managed assets worth $0.5 million and charges 35 bps in annual fees. It trades in an average daily volume of under 500 shares.
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5 ETFs Set to Soar on Busiest Memorial Day in Two Decades
This Memorial Day holiday weekend is likely to see record-breaking travelers hitting the road and taking to the skies. According to travel service provider American Automobile Association (“AAA”), this summer travel season will be the busiest in nearly two decades.
An increase in travel demand should boost revenues and profitability for the travel and tourism industry, thereby leading to higher share prices. Investors can tap this trend through ETFs that stand to profit big time from an upbeat Memorial Day travel trend. ETFMG Travel Tech ETF (AWAY - Free Report) , Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report) , ALPS Global Travel Beneficiaries ETF (JRNY - Free Report) , AdvisorShares Hotel ETF (BEDZ - Free Report) and Themes Airlines ETF (AIRL - Free Report) look like intriguing picks.
Busy Travel Trends
According to AAA, about 44 million Americans will travel 50 miles (80 km) or more over the Memorial Day weekend (May 23-27), up 4% from last year. This would represent the second busiest Memorial Day weekend ever. Of them, a record 38.4 million are expected to go on a road trip, 3.5 million would fly and 2 million would travel by train and other modes (including buses and cruises).
Road travel is expected to hit the highest level since AAA began tracking data in 2000 and increase 4% from the last year, driven by a lower pump price. The national average for gas prices declined for the fourth consecutive week ahead of Memorial Day weekend and is expected to remain in the mid-$3 range for most of the summer, per GasBuddy (see: all the Consumer Discretionary ETFs here).
According to Hopper data, car rentals for the long weekend will cost $43 on average per day, roughly unchanged from last year. The demand for rentals will be highest in Atlanta, GA, Boston, MA, Las Vegas, NV and Orlando, FL, with most renters scheduled to pick up their cars on May 23 and 24.
This Memorial Day weekend will also be the most crowded at airports since 2005. Air ticket fares are comparable to last year, with just a 1-2% increase in prices for domestic flights. Hotel stays are averaging $212 per night this year, per Hopper data. This is slightly higher than the average prices for the summer. Meanwhile, the Federal Aviation Administration expects this Memorial Day weekend to be the busiest for air travel in more than a decade. It projects more than 53,000 flights on Thursday and 50,000 on Friday.
Travelers are seeking theme parks and entertainment venues in Orlando, New York, Las Vegas and Southern California. Seattle, WA, Anchorage, AK and Vancouver are the top destinations because of the popularity of Alaska cruises this time of the year. Florida beaches and cruise ports will also be packed. European cities dominate the international list, according to AAA.
ETFs Set to Surge
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 American firms accounting for 36%, followed by 13% share each in Australia and the United Kingdom (read: Travel ETF (AWAY - Free Report) Hits a New 52-Week High).
ETFMG Travel Tech ETF has accumulated $86.8 million in its asset base and trades in an average daily volume of 14,000 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 passenger airline, hotel and cruise industries. Holding 64 stocks in its basket, American firms make up 47.6% of the portfolio, while Liberia, the United Kingdom and Panama round off the next three with single-digit exposure each.
Defiance Hotel, Airline, and Cruise ETF has gathered around $32.3 million in its asset base and charges 45 bps in annual fees. Volume is lower as it exchanges around 12,000 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 76 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.
ALPS Global Travel Beneficiaries ETF has accumulated $6.3 million in its asset base and charges 65 bps in annual fees. JRNY trades in an average daily volume of 1,000 shares (read: Focus on Disney ETFs Post Q2 Earnings).
AdvisorShares Hotel ETF (BEDZ - Free Report)
AdvisorShares Hotel ETF is actively managed and provides exposure to the global hotel and lodging industry as well as its related services. It holds 27 stocks in its basket, with American firms accounting for about 85% share in the basket.
AdvisorShares Hotel ETF charges 99 bps in annual fees and trades in an average daily volume of 1,000 shares. It has amassed $3.4 million in its asset base.
Themes Airlines ETF (AIRL - Free Report)
Themes Airlines ETF offers exposure to the largest 31 airline companies by market capitalization by tracking the Solactive Airlines Index. American firms make up the largest share in the basket at 47.8%, followed by United Kingdom firms with 11.8% share.
Themes Airlines ETF has managed assets worth $0.5 million and charges 35 bps in annual fees. It trades in an average daily volume of under 500 shares.