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Travel & Tourism ETFs to Gain on Easing U.S. Travel Restriction
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The United States will likely relax travel restrictions for international visitors who are vaccinated against COVID-19 in November, including those from the U.K. and EU, the White House said recently, as quoted on CNBC. Foreigners visiting the United States will have to show proof of vaccination and a negative COVID-19 test taken within three days of departure. The latest White House announcement came following the peak summer travel season which indicates solid holiday travel demand.
Airlines have urged the Biden administration to lift the rules, which have upset demand for international travel. The changes will be put into effect in early November, which will aid the holiday bookings. European and British officials have lifted entry bans for United States and other visitors due to greater availability of vaccines. Letting more international travelers into the United States would have far-reaching impacts on industries including airlines, retail and restaurants.
“Leisure bookings for the holidays from inbound tourist visits and non-US citizens visiting friends and relatives will accelerate in upcoming weeks,” Jonathan Root, senior vice president at Moody’s Investors Service, said in an emailed statement, as quoted on CNBC. A stronger increase in business travel by the first quarter of 2022 is also expected.
Against this backdrop, below we highlight a few travel and tourism-related sector ETFs that are likely to gain ahead.
The underlying U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines. The fund charges 60 bps in fees. American Airlines (10.36%), Southwest Airlines (10.17%) and Delta Airlines (10.06%) are the top three stocks of the fund.
The Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report)
The underlying BlueStar Global Hotels, Airlines, and Cruises Index is a rules-based index that consists of globally-listed stocks of companies that derive at least 50% of their revenues from the passenger airline, hotel and resort, or cruise industries. The fund charges 45 bps in fees. Marriot (8.36%), Hilton (6.62%) and Carnival Corp (6.61%) are the top three stocks of the fund.
The underlying S-Network Global Travel Index identifies exchange-traded stocks of companies that are materially engaged in the global travel industry. The fund charges 65 bps in fees. Marriot (4.81%), Booking Holdings (4.67%) and American Express (4.65%) are top the companies of the fund (read: SS&C ALPS Advisors Launches Travel ETF (JRNY - Free Report) ).
The fund follows the Prime Travel Technology Index NTR, charging investors 75 bps in annual fees. The fund holds 34 stocks in its basket with travel bookings & reservations companies accounting for 51.9% of assets, followed by 17.6% in travel advice companies and 16.6% share in travel price comparison firms. Booking Holdings (5.35%), Airbnb (4.52%) and Uber Technologies Inc (4.25%) are the top three holdings of the fund.
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Travel & Tourism ETFs to Gain on Easing U.S. Travel Restriction
The United States will likely relax travel restrictions for international visitors who are vaccinated against COVID-19 in November, including those from the U.K. and EU, the White House said recently, as quoted on CNBC. Foreigners visiting the United States will have to show proof of vaccination and a negative COVID-19 test taken within three days of departure. The latest White House announcement came following the peak summer travel season which indicates solid holiday travel demand.
Airlines have urged the Biden administration to lift the rules, which have upset demand for international travel. The changes will be put into effect in early November, which will aid the holiday bookings. European and British officials have lifted entry bans for United States and other visitors due to greater availability of vaccines. Letting more international travelers into the United States would have far-reaching impacts on industries including airlines, retail and restaurants.
“Leisure bookings for the holidays from inbound tourist visits and non-US citizens visiting friends and relatives will accelerate in upcoming weeks,” Jonathan Root, senior vice president at Moody’s Investors Service, said in an emailed statement, as quoted on CNBC. A stronger increase in business travel by the first quarter of 2022 is also expected.
Against this backdrop, below we highlight a few travel and tourism-related sector ETFs that are likely to gain ahead.
ETFs in Focus
U.S. Global Jets ETF (JETS - Free Report)
The underlying U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines. The fund charges 60 bps in fees. American Airlines (10.36%), Southwest Airlines (10.17%) and Delta Airlines (10.06%) are the top three stocks of the fund.
The Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report)
The underlying BlueStar Global Hotels, Airlines, and Cruises Index is a rules-based index that consists of globally-listed stocks of companies that derive at least 50% of their revenues from the passenger airline, hotel and resort, or cruise industries. The fund charges 45 bps in fees. Marriot (8.36%), Hilton (6.62%) and Carnival Corp (6.61%) are the top three stocks of the fund.
ALPS Global Travel Beneficiaries ETF (JRNY - Free Report)
The underlying S-Network Global Travel Index identifies exchange-traded stocks of companies that are materially engaged in the global travel industry. The fund charges 65 bps in fees. Marriot (4.81%), Booking Holdings (4.67%) and American Express (4.65%) are top the companies of the fund (read: SS&C ALPS Advisors Launches Travel ETF (JRNY - Free Report) ).
ETFMG Travel Tech ETF (AWAY - Free Report)
The fund follows the Prime Travel Technology Index NTR, charging investors 75 bps in annual fees. The fund holds 34 stocks in its basket with travel bookings & reservations companies accounting for 51.9% of assets, followed by 17.6% in travel advice companies and 16.6% share in travel price comparison firms. Booking Holdings (5.35%), Airbnb (4.52%) and Uber Technologies Inc (4.25%) are the top three holdings of the fund.