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Travel ETFs Flying High on Vaccine Optimism

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Travel stocks are flying high as three excellent Covid-19 vaccines are being rolled out. Recently, the FDA approved Johnson & Johnson’s (JNJ - Free Report) single-dose vaccine for use in the US. And Merck (MRK - Free Report) will help manufacture JNJ’s vaccine, which will significantly boost the vaccination campaign and hopefully bring a return to normalcy soon.

Yesterday, President Biden said that there will be enough vaccines available for all US adults by the end of May, two months earlier than previously expected. The pent-up demand could result in a travel boom later this year.

The airline industry is also expected to receive $14 billion in aid as part of Biden’s $1.9 trillion stimulus bill. Investors should however remember that business travel may not return to pre-pandemic levels as many would continue remote working and video conferencing in the future as well.

The U.S. Global Jets ETF (JETS - Free Report) , the only pure-play airline ETF, has seen enormous investor interest in past few months. Its top holdings are Southwest Airlines (LUV - Free Report) , American Airlines (AAL - Free Report) , United Airlines (UAL - Free Report) and Delta Airlines (DAL - Free Report) .

The ETFMG Travel Tech ETF (AWAY - Free Report) is the first ETF to focus on technology-focused global travel companies. Facedrive, TripAdvisor (TRIP - Free Report) and Airbnb (ABNB - Free Report) are its top holdings.

Please watch the short video above to learn more about these ETFs.

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