Looking for broad exposure to the Industrials - Transportation/Shipping segment of the equity market? You should consider the U.S. Global Jets ETF (
JETS Quick Quote JETS - Free Report) , a passively managed exchange traded fund launched on 04/30/2015.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Additionally, sector ETFs offer convenient 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 5, placing it in top 31%.
The fund is sponsored by U.S. Global Investors. It has amassed assets over $3.90 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.
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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 0.04%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, United Airls Hldgs Inc (
UAL Quick Quote UAL - Free Report) accounts for about 11.01% of total assets, followed by American Airls Group Inc ( AAL Quick Quote AAL - Free Report) and Southwest Airls Co ( LUV Quick Quote LUV - Free Report) .
The top 10 holdings account for about 65.22% of total assets under management.
Performance and Risk
The ETF has gained about 21.21% so far this year and is up roughly 104.52% in the last one year (as of 05/10/2021). In that past 52-week period, it has traded between $12 and $28.71.
The ETF has a beta of 1.61 and standard deviation of 43.15% 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.
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 Quick Quote FTXR - Free Report) tracks Nasdaq US Smart Transportation Index and the iShares Transportation Average ETF ( IYT Quick Quote IYT - Free Report) tracks Dow Jones Transportation Average Index. First Trust NASDAQ Transportation ETF has $1.15 billion in assets, iShares Transportation Average ETF has $2.20 billion. FTXR has an expense ratio of 0.60% and IYT charges 0.42%. Bottom Line
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