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Should You Invest in the U.S. Global Jets ETF (JETS)?
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Looking for broad exposure to the Industrials - Transportation/Shipping segment of the equity market? You should consider the U.S. Global Jets ETF (JETS - Free Report) , a passively managed exchange traded fund launched on 04/30/2015.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $2.95 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market. JETS seeks to match the performance of the U.S. Global Jets Index before fees and expenses.
The U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.70%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Southwest Airls Co (LUV - Free Report) accounts for about 11.41% of total assets, followed by Delta Air Lines Inc Del (DAL - Free Report) and United Airls Hldgs Inc (UAL - Free Report) .
The top 10 holdings account for about 63.18% of total assets under management.
Performance and Risk
Year-to-date, the U.S. Global Jets ETF has lost about -27.12% so far, and is down about -24.92% over the last 12 months (as of 12/14/2020). JETS has traded between $12 and $32.27 in this past 52-week period.
The ETF has a beta of 1.60 and standard deviation of 42.57% for the trailing three-year period, making it a high risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.
Alternatives
U.S. Global Jets ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JETS is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
First Trust NASDAQ Transportation ETF (FTXR - Free Report) tracks Nasdaq US Smart Transportation Index and the iShares Transportation Average ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index. First Trust NASDAQ Transportation ETF has $790.91 million in assets, iShares Transportation Average ETF has $1.49 billion. FTXR has an expense ratio of 0.60% and IYT charges 0.42%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the U.S. Global Jets ETF (JETS)?
Looking for broad exposure to the Industrials - Transportation/Shipping segment of the equity market? You should consider the U.S. Global Jets ETF (JETS - Free Report) , a passively managed exchange traded fund launched on 04/30/2015.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $2.95 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market. JETS seeks to match the performance of the U.S. Global Jets Index before fees and expenses.
The U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.70%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Southwest Airls Co (LUV - Free Report) accounts for about 11.41% of total assets, followed by Delta Air Lines Inc Del (DAL - Free Report) and United Airls Hldgs Inc (UAL - Free Report) .
The top 10 holdings account for about 63.18% of total assets under management.
Performance and Risk
Year-to-date, the U.S. Global Jets ETF has lost about -27.12% so far, and is down about -24.92% over the last 12 months (as of 12/14/2020). JETS has traded between $12 and $32.27 in this past 52-week period.
The ETF has a beta of 1.60 and standard deviation of 42.57% for the trailing three-year period, making it a high risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.
Alternatives
U.S. Global Jets ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JETS is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
First Trust NASDAQ Transportation ETF (FTXR - Free Report) tracks Nasdaq US Smart Transportation Index and the iShares Transportation Average ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index. First Trust NASDAQ Transportation ETF has $790.91 million in assets, iShares Transportation Average ETF has $1.49 billion. FTXR has an expense ratio of 0.60% and IYT charges 0.42%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.