Launched on 04/30/2015, the U.S. Global Jets ETF (
JETS Quick Quote JETS - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
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.
Investor-friendly, sector ETFs provide many options 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 3, placing it in top 19%.
The fund is sponsored by U.S. Global Investors. It has amassed assets over $2.48 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.
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 0.85%.
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, American Airls Group Inc (
AAL Quick Quote AAL - Free Report) accounts for about 10.15% of total assets, followed by United Airls Hldgs Inc ( UAL Quick Quote UAL - Free Report) and Delta Air Lines Inc Del ( DAL Quick Quote DAL - Free Report) .
The top 10 holdings account for about 57.97% of total assets under management.
Performance and Risk
The ETF has lost about -23.79% so far this year and is down about -33.66% in the last one year (as of 06/21/2022). In that past 52-week period, it has traded between $16.05 and $25.39.
The ETF has a beta of 1.29 and standard deviation of 47.19% for the trailing three-year period, making it a high risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
U.S. Global Jets ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, JETS is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
SPDR S&P Transportation ETF (
XTN Quick Quote XTN - Free Report) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF ( IYT Quick Quote IYT - Free Report) tracks Dow Jones Transportation Average Index. SPDR S&P Transportation ETF has $506.92 million in assets, iShares U.S. Transportation ETF has $769.90 million. XTN has an expense ratio of 0.35% and IYT charges 0.41%. Bottom Line
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