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U.S. Tourism Hit Post Trump's Election: ETFs in Focus
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The number of people willing to travel to the U.S. has reduced dramatically, thanks to President Trump’s plans. The new administration doesn’t seem to be in favor of the influx of foreigners, as proven by their high priority policies like the controversial travel ban and building of the wall.
According to data from the U.S. Travel Association, tourism contributes $2.1 trillion to the overall economic output and also supports 15.1 million jobs.
Data released this week by travel search engine Kayak indicated a 58% decline in flight searches to Tampa and Orlando from UK. There was also a decline in flight searches to Miami (down 52%), Fort Lauderdale (down 57%), San Diego (down 43%), Las Vegas (down 36%) and Los Angeles (down32%) (read: Will Airline ETF Surge on Earnings or Dive on Trump?)).
According to Hopper, flight searches from Saudi Arabia and Bahrain dropped drastically, 33% and 37% respectively.
Flight prices are however holding firm and stock prices haven’t been affected. This is usually due to the fact that airline prices tend to take weeks before adjusting to consumer demand trends. Moreover, continued rise in oil prices is still uncertain after the OPEC production cut deal led to a short term rise in oil prices (read: Oil Service ETFs Dip on Mixed Earnings: A Good Entry Point?).
However, Kayak has stated that hotel prices are down by around 39% in Las Vegas and around 32% in New York City.
The Global Business Travel Association (GBTA) estimates that President Trump may have cost the U.S travel industry $185 million in lost revenues since his election.
Considering the current environment, the following ETFs are to be focused on:
PowerShares Dynamic Leisure and Entertainment Portfolio ETF (PEJ - Free Report)
This ETF is one of the best funds to gain exposure to the entertainment and leisure industry. This fund tracks the Dynamic Leisure and Entertainment Intellidex Index and consists of just about 30 stocks.
The fund has about 23% of the assets allocated to Airlines. It also has a significant exposure to hotels. It charges a fee of 63 bps and manages AUM of $148 million. The fund has a daily volume of around 10,000 shares a day. PEJ generated a return of 2.27% year to date and has a one-year return of 18.28%. As such, this ETF has a current Zacks Rank#3 (Hold) with a High risk outlook.
This fund is designed to track the investment performance of the U.S. Global Jets Index, which in turn tracks the performance of commercial airline companies, aircraft manufacturers, and airport and terminal services companies. The industry seems to be riding Warren Buffet’s $10 billion investment tide. However, recent statistics indicate short term doubt over the industry.
The fund is mostly focused on North America with slight exposure to other parts of the world too. The fund has an expense ratio of around 60 bps and manages AUM of around $66 million. The fund has a daily volume of around 80,000 shares a day. JETS generated return of 4.20% year to date and has a one-year return of 20.91%. This ETF has a Zacks Rank#3 (Hold) with a High risk outlook.
Bottom Line
The outlook for the Leisure and Entertainment industry is quite uncertain. President Trump’s policies are a major deciding factor for the tourism industry. Therefore, it is best to remain on the sidelines as of now before entering into these investments.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
The number of people willing to travel to the U.S. has reduced dramatically, thanks to President Trump’s ideologies. The head of the state doesn’t seem to be in favor of the influx of foreigners, as proven by his high priority policies like the controversial travel ban and building of the wall.
According to data from the U.S. Travel Association, tourism contributes $2.1 trillion to the overall economic output and also supports 15.1 million jobs.
Data released this week by travel search engine Kayak indicated a 58% decline in flight searches to Tampa and Orlando from UK. There was also a decline in flight searches to Miami (down 52%), Fort Lauderdale (down 57%), San Diego (down 43%), Las Vegas (down 36%) and Los Angeles (down32%) (read: Will Airline ETF Surge on Earnings or Dive on Trump?).
The President’s take on Muslims seems to be scaring away people regardless of their faith. According to Hopper, flight searches from Saudi Arabia and Bahrain also dropped drastically, 33% and 37% respectively.
Flight prices are however holding firm and stock prices haven’t been affected. This is usually due to the fact that airline prices tend to take weeks before adjusting to consumer demand trends. Moreover, continued rise in oil prices is still uncertain after the OPEC production cut deal led to a short term rise in oil prices (read: Oil Service ETFs Dip on Mixed Earnings: A Good Entry Point?).
However, Kayak has stated that hotel prices are down by around 39% in Las Vegas and around 32% in New York City.
The Global Business Travel Association (GBTA) estimates that President Trump may have cost the U.S travel industry $185 million in lost revenues since his election.
Considering the current environment, the following ETFs are to be focused on:
PowerShares Dynamic Leisure and Entertainment Portfolio ETF (PEJ - Free Report) :
This ETF is one of the best funds to gain exposure to the entertainment and leisure industry. This fund tracks the Dynamic Leisure and Entertainment Intellidex Index and consists of just about 30 stocks.
The fund has about 23% of the assets allocated to Airlines. It also has a significant exposure to hotels. It charges a fee of 63 bps and manages AUM of $148 million. The fund has a daily volume of around 10,000 shares a day. PEJ generated a return of 2.27% year to date and has a one-year return of 18.28%. As such, this ETF has a current Zacks Rank#3 (Hold) with a High risk outlook.
This fund is designed to track the investment performance of the U.S. Global Jets Index, which in turn tracks the performance of commercial airline companies, aircraft manufacturers, and airport and terminal services companies. The industry seems to be riding Warren Buffet’s $10 billion investment tide. However, recent statistics indicate short term doubt over the industry.
The fund is mostly focused on North America with slight exposure to other parts of the world too. The fund has an expense ratio of around 60 bps and manages AUM of around $66 million. The fund has a daily volume of around 80,000 shares a day. JETS generated return of 4.20% year to date and has a one-year return of 20.91%. This ETF has a Zacks Rank#3 (Hold) with a High risk outlook.
Bottom Line
The outlook for the Leisure and Entertainment industry is quite uncertain. President Trump’s policies are a major deciding factor for the tourism industry. Therefore, it is best to remain on the sidelines as of now before entering into these investments.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
The number of people willing to travel to the U.S. has reduced dramatically, thanks to President Trump’s ideologies. The head of the state doesn’t seem to be in favor of the influx of foreigners, as proven by his high priority policies like the controversial travel ban and building of the wall.
According to data from the U.S. Travel Association, tourism contributes $2.1 trillion to the overall economic output and also supports 15.1 million jobs.
Data released this week by travel search engine Kayak indicated a 58% decline in flight searches to Tampa and Orlando from UK. There was also a decline in flight searches to Miami (down 52%), Fort Lauderdale (down 57%), San Diego (down 43%), Las Vegas (down 36%) and Los Angeles (down32%) (read: Will Airline ETF Surge on Earnings or Dive on Trump?).
The President’s take on Muslims seems to be scaring away people regardless of their faith. According to Hopper, flight searches from Saudi Arabia and Bahrain also dropped drastically, 33% and 37% respectively.
Flight prices are however holding firm and stock prices haven’t been affected. This is usually due to the fact that airline prices tend to take weeks before adjusting to consumer demand trends. Moreover, continued rise in oil prices is still uncertain after the OPEC production cut deal led to a short term rise in oil prices (read: Oil Service ETFs Dip on Mixed Earnings: A Good Entry Point?).
However, Kayak has stated that hotel prices are down by around 39% in Las Vegas and around 32% in New York City.
The Global Business Travel Association (GBTA) estimates that President Trump may have cost the U.S travel industry $185 million in lost revenues since his election.
Considering the current environment, the following ETFs are to be focused on:
PowerShares Dynamic Leisure and Entertainment Portfolio ETF (PEJ - Free Report) :
This ETF is one of the best funds to gain exposure to the entertainment and leisure industry. This fund tracks the Dynamic Leisure and Entertainment Intellidex Index and consists of just about 30 stocks.
The fund has about 23% of the assets allocated to Airlines. It also has a significant exposure to hotels. It charges a fee of 63 bps and manages AUM of $148 million. The fund has a daily volume of around 10,000 shares a day. PEJ generated a return of 2.27% year to date and has a one-year return of 18.28%. As such, this ETF has a current Zacks Rank#3 (Hold) with a High risk outlook.
This fund is designed to track the investment performance of the U.S. Global Jets Index, which in turn tracks the performance of commercial airline companies, aircraft manufacturers, and airport and terminal services companies. The industry seems to be riding Warren Buffet’s $10 billion investment tide. However, recent statistics indicate short term doubt over the industry.
The fund is mostly focused on North America with slight exposure to other parts of the world too. The fund has an expense ratio of around 60 bps and manages AUM of around $66 million. The fund has a daily volume of around 80,000 shares a day. JETS generated return of 4.20% year to date and has a one-year return of 20.91%. This ETF has a Zacks Rank#3 (Hold) with a High risk outlook.
Bottom Line
The outlook for the Leisure and Entertainment industry is quite uncertain. President Trump’s policies are a major deciding factor for the tourism industry. Therefore, it is best to remain on the sidelines as of now before entering into these investments.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
The number of people willing to travel to the U.S. has reduced dramatically, thanks to President Trump’s ideologies. The head of the state doesn’t seem to be in favor of the influx of foreigners, as proven by his high priority policies like the controversial travel ban and building of the wall.
According to data from the U.S. Travel Association, tourism contributes $2.1 trillion to the overall economic output and also supports 15.1 million jobs.
Data released this week by travel search engine Kayak indicated a 58% decline in flight searches to Tampa and Orlando from UK. There was also a decline in flight searches to Miami (down 52%), Fort Lauderdale (down 57%), San Diego (down 43%), Las Vegas (down 36%) and Los Angeles (down32%) (read: Will Airline ETF Surge on Earnings or Dive on Trump?).
The President’s take on Muslims seems to be scaring away people regardless of their faith. According to Hopper, flight searches from Saudi Arabia and Bahrain also dropped drastically, 33% and 37% respectively.
Flight prices are however holding firm and stock prices haven’t been affected. This is usually due to the fact that airline prices tend to take weeks before adjusting to consumer demand trends. Moreover, continued rise in oil prices is still uncertain after the OPEC production cut deal led to a short term rise in oil prices (read: Oil Service ETFs Dip on Mixed Earnings: A Good Entry Point?).
However, Kayak has stated that hotel prices are down by around 39% in Las Vegas and around 32% in New York City.
The Global Business Travel Association (GBTA) estimates that President Trump may have cost the U.S travel industry $185 million in lost revenues since his election.
Considering the current environment, the following ETFs are to be focused on:
PowerShares Dynamic Leisure and Entertainment Portfolio ETF (PEJ - Free Report) :
This ETF is one of the best funds to gain exposure to the entertainment and leisure industry. This fund tracks the Dynamic Leisure and Entertainment Intellidex Index and consists of just about 30 stocks.
The fund has about 23% of the assets allocated to Airlines. It also has a significant exposure to hotels. It charges a fee of 63 bps and manages AUM of $148 million. The fund has a daily volume of around 10,000 shares a day. PEJ generated a return of 2.27% year to date and has a one-year return of 18.28%. As such, this ETF has a current Zacks Rank#3 (Hold) with a High risk outlook.
This fund is designed to track the investment performance of the U.S. Global Jets Index, which in turn tracks the performance of commercial airline companies, aircraft manufacturers, and airport and terminal services companies. The industry seems to be riding Warren Buffet’s $10 billion investment tide. However, recent statistics indicate short term doubt over the industry.
The fund is mostly focused on North America with slight exposure to other parts of the world too. The fund has an expense ratio of around 60 bps and manages AUM of around $66 million. The fund has a daily volume of around 80,000 shares a day. JETS generated return of 4.20% year to date and has a one-year return of 20.91%. This ETF has a Zacks Rank#3 (Hold) with a High risk outlook.
Bottom Line
The outlook for the Leisure and Entertainment industry is quite uncertain. President Trump’s policies are a major deciding factor for the tourism industry. Therefore, it is best to remain on the sidelines as of now before entering into these investments.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
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U.S. Tourism Hit Post Trump's Election: ETFs in Focus