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The travel and tourism sector, which was hit hard by the emergence of the Omicron variant, was the biggest gainer on the Dec 6 trading session as fears over the virus eased.
AdvisorShares Restaurant ETF (EATZ - Free Report) was the biggest beneficiary, jumping 7.6%. ETFMG Travel Tech ETF (AWAY - Free Report) , U.S. Global Jets ETF (JETS - Free Report) , and Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report) gained about 5% each, while AdvisorShares Hotel ETF (BEDZ - Free Report) rose 4% on the day.
Bets that the new COVID-19 variant Omicron may cause milder illness than previously feared, renewed confidence in consumer and travel demand. Dr. Anthony Fauci, the White House chief medical adviser, said early indications of Omicron suggested that it may be less dangerous than the Delta variant. As a result, airlines, cruise lines, restaurants, hotels and other travel companies saw a huge jump (read: 5 Top-Ranked ETFs to Invest in December).
The solid trend is likely to continue given the robust holiday travel demand after over a year of travelers being stuck at home. The emergence of COVID-19 vaccine boosters will also help to drive demand. Additionally, the $1.2 trillion infrastructure bill will provide fuel to the travel industry. The bill would put $550 billion of new funding into transportation projects, the utility grid, and broadband. Including $110 billion for roads, bridges and other major projects, along with $66 billion for passenger and freight rail, and $39 billion for public transit.
AdvisorShares Restaurant ETF is the actively managed and the only ETF investing exclusively in the restaurant and foodservice industry, including restaurants, bars, pubs, fast food, take-out facilities, food catering services and more. AdvisorShares Restaurant ETF holds 33 securities in its basket with a higher concentration on the top firm.
AdvisorShares Restaurant ETF has gathered $4.3 million in its asset base so far since its debut in late April this year. EATZ charges 99 bps in annual fees and trades in an average daily volume of 4,000 shares.
ETFMG Travel Tech ETF is the first ETF that offers direct access to the technology-focused global travel and tourism industry. It follows the Prime Travel Technology Index, charging investors 75 bps in annual fees. ETFMG Travel Tech ETF holds 36 stocks in its basket with travel bookings & reservations companies accounting for 51.9% of assets, followed by a 17.5% share in travel advice firms (read: ETF Areas to Gain/Lose on Fear of Omicron Strain of Coronavirus).
ETFMG Travel Tech ETF has accumulated $261.7 million in its asset base and trades in an average daily volume of 322,000 shares.
U.S. Global Jets ETF 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. The product holds 51 securities and charges 60 bps in annual fees.
U.S. Global Jets ETF has gathered $3.2 billion in its asset base while sees a heavy trading volume of nearly 8.4 million shares a day. JETS has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: S&P 500 Notches Best Day in Seven Weeks: 5 ETF Winners).
Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report)
Defiance Hotel, Airline, and Cruise ETF tracks the BlueStar Global Hotels, Airlines, and Cruises Index, which measures the performance of globally listed companies primarily engaged in the travel and tourism industries. Holding 53 stocks in its basket, American firms make up for 45.8% of the portfolio while Panama, Japan and the United Kingdom round off the next three with single-digit exposure each.
Defiance Hotel, Airline, and Cruise ETF, launched in June, has gathered around $16.8 million in its asset base and charges 45 bps in annual fees. Volume is lower as it exchanges around 35,000 shares a day on average.
AdvisorShares Hotel ETF has also newly debuted in the space and has accumulated $9.2 million in its asset base since late April. BEDZ is the actively managed and only ETF offering focused exposure to the global hotel and lodging industry as well as its related services. AdvisorShares Hotel ETF holds 31 stocks in its basket that are pretty spread across components.
AdvisorShares Hotel ETF charges 99 bps in annual fees and trades in an average daily volume of 11,000 shares.
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Travel ETFs Fly High as Omicron Fears Ease
The travel and tourism sector, which was hit hard by the emergence of the Omicron variant, was the biggest gainer on the Dec 6 trading session as fears over the virus eased.
AdvisorShares Restaurant ETF (EATZ - Free Report) was the biggest beneficiary, jumping 7.6%. ETFMG Travel Tech ETF (AWAY - Free Report) , U.S. Global Jets ETF (JETS - Free Report) , and Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report) gained about 5% each, while AdvisorShares Hotel ETF (BEDZ - Free Report) rose 4% on the day.
Bets that the new COVID-19 variant Omicron may cause milder illness than previously feared, renewed confidence in consumer and travel demand. Dr. Anthony Fauci, the White House chief medical adviser, said early indications of Omicron suggested that it may be less dangerous than the Delta variant. As a result, airlines, cruise lines, restaurants, hotels and other travel companies saw a huge jump (read: 5 Top-Ranked ETFs to Invest in December).
The solid trend is likely to continue given the robust holiday travel demand after over a year of travelers being stuck at home. The emergence of COVID-19 vaccine boosters will also help to drive demand. Additionally, the $1.2 trillion infrastructure bill will provide fuel to the travel industry. The bill would put $550 billion of new funding into transportation projects, the utility grid, and broadband. Including $110 billion for roads, bridges and other major projects, along with $66 billion for passenger and freight rail, and $39 billion for public transit.
Let’s delve deeper into the above-mentioned ETFs:
AdvisorShares Restaurant ETF (EATZ - Free Report)
AdvisorShares Restaurant ETF is the actively managed and the only ETF investing exclusively in the restaurant and foodservice industry, including restaurants, bars, pubs, fast food, take-out facilities, food catering services and more. AdvisorShares Restaurant ETF holds 33 securities in its basket with a higher concentration on the top firm.
AdvisorShares Restaurant ETF has gathered $4.3 million in its asset base so far since its debut in late April this year. EATZ charges 99 bps in annual fees and trades in an average daily volume of 4,000 shares.
ETFMG Travel Tech ETF (AWAY - Free Report)
ETFMG Travel Tech ETF is the first ETF that offers direct access to the technology-focused global travel and tourism industry. It follows the Prime Travel Technology Index, charging investors 75 bps in annual fees. ETFMG Travel Tech ETF holds 36 stocks in its basket with travel bookings & reservations companies accounting for 51.9% of assets, followed by a 17.5% share in travel advice firms (read: ETF Areas to Gain/Lose on Fear of Omicron Strain of Coronavirus).
ETFMG Travel Tech ETF has accumulated $261.7 million in its asset base and trades in an average daily volume of 322,000 shares.
U.S. Global Jets ETF (JETS - Free Report)
U.S. Global Jets ETF 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. The product holds 51 securities and charges 60 bps in annual fees.
U.S. Global Jets ETF has gathered $3.2 billion in its asset base while sees a heavy trading volume of nearly 8.4 million shares a day. JETS has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: S&P 500 Notches Best Day in Seven Weeks: 5 ETF Winners).
Defiance Hotel, Airline, and Cruise ETF (CRUZ - Free Report)
Defiance Hotel, Airline, and Cruise ETF tracks the BlueStar Global Hotels, Airlines, and Cruises Index, which measures the performance of globally listed companies primarily engaged in the travel and tourism industries. Holding 53 stocks in its basket, American firms make up for 45.8% of the portfolio while Panama, Japan and the United Kingdom round off the next three with single-digit exposure each.
Defiance Hotel, Airline, and Cruise ETF, launched in June, has gathered around $16.8 million in its asset base and charges 45 bps in annual fees. Volume is lower as it exchanges around 35,000 shares a day on average.
AdvisorShares Hotel ETF (BEDZ - Free Report)
AdvisorShares Hotel ETF has also newly debuted in the space and has accumulated $9.2 million in its asset base since late April. BEDZ is the actively managed and only ETF offering focused exposure to the global hotel and lodging industry as well as its related services. AdvisorShares Hotel ETF holds 31 stocks in its basket that are pretty spread across components.
AdvisorShares Hotel ETF charges 99 bps in annual fees and trades in an average daily volume of 11,000 shares.