Hopes of a sooner-than-expected coronavirus vaccine launch led Wall Street to a record high on Nov 16 as bets on full economic reopening strengthened. U.S. biotech firm
Moderna (announced on Nov 16 that its experimental vaccine against COVID-19 was 94.5% effective. This marks the second major advancement in the COVID-19 vaccine research. MRNA Quick Quote MRNA - Free Report)
Pfizer ( PFE Quick Quote PFE - Free Report) and BioNTech (BNTX) announced that their vaccine candidate was more than 90% effective in avoiding COVID-19 in its clinical trial instigated a sharp market rally. This raised hopes of a return to normalcy sooner than expected. Moreover, the likelihood of a divided Congress in the United States, which means status quo and chances of no major policy changes in the medium term have been aiding the global markets this month (read: 3 Reasons to Bet on Healthcare ETFs).
Among several economically sensitive sectors that are going to be the biggest beneficiaries of reopening, travel stocks come at the forefront. The group saw massive gains globally on Nov 16. Cruise operators like
Carnival Corp. (CCL) and Royal Caribbean Cruises Ltd. (RCL) gained 9.7% and 7%, respectively.
Airlines were a big winner with
United Airlines Holdings Inc. ( UAL Quick Quote UAL - Free Report) (up 5.2%), American Airlines Group Inc. (AAL) (up 4.5%) and Delta Air Lines Inc. (DAL) (up 4.2%) deserving special mention. Coming to the hotel stocks, Marriott International Inc. ( MAR Quick Quote MAR - Free Report) and Hyatt Hotels Corp. (H) gained 3.1% and 3.4%, respectively, on the day.
Restaurant stocks gained too with
Darden Restaurants Inc. (DRI) and Fiesta Restaurant Group Inc. (FRGI) adding 2.3% and 4.8%, respectively. Casino operators like MGM Resorts International (MGM) (up 2.4%) and Wynn Resorts Ltd. (WYNN) (up 2.8%) also celebrated the vaccine news.
No wonder, this group of leisure and travel stocks will likely remain charged up in the coming days, if no bad news crops up on the virus or vaccine front.
U.S. Global Jets ETF ( JETS Quick Quote JETS - Free Report)
This fund 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.
ETFMG Travel Tech ETF ( AWAY Quick Quote AWAY - Free Report)
The fund follows the Prime Travel Technology Index. The product holds 29 stocks in its basket with travel bookings & reservations companies accounting for 45% of assets, followed by 19.3% share in ride sharing & hailing firms.
VanEck Vectors Gaming ETF ( BJK Quick Quote BJK - Free Report)
This ETF provides investors with exposure to companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology and gaming equipment. It follows the MVIS Global Gaming Index, holding 42 securities in its basket.
Invesco Dynamic Leisure and Entertainment ETF ( PEJ Quick Quote PEJ - Free Report) This fund tracks the Dynamic Leisure and Entertainment Intellidex Index and holds a small basket of 32 stocks. From an industry look, broadcasting and airlines take the largest share at 26.2% and 21.2%, respectively, while restaurants & bars round off the next spot with double-digit exposure. Want key ETF info delivered straight to your inbox?
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