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Should You Invest in the U.S. Global Jets ETF (JETS)?
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Designed to provide broad exposure to the Industrials - Transportation/Shipping segment of the equity market, the U.S. Global Jets ETF (JETS - Free Report) is a passively managed exchange traded fund launched on 04/30/2015.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $1.69 billion, making it one of the larger 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.
Costs
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.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Delta Air Lines Inc Del (DAL - Free Report) accounts for about 11% of total assets, followed by American Airls Group Inc (AAL - Free Report) and United Airls Hldgs Inc (UAL - Free Report) .
The top 10 holdings account for about 61% of total assets under management.
Performance and Risk
Year-to-date, the U.S. Global Jets ETF has gained about 0.58% so far, and was up about 3.85% over the last 12 months (as of 01/09/2024). JETS has traded between $14.74 and $22.18 in this past 52-week period.
The ETF has a beta of 1.46 and standard deviation of 32% for the trailing three-year period, making it a high risk choice in the space. With about 50 holdings, it has more concentrated exposure than peers.
Alternatives
U.S. Global Jets ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. JETS, then, is not the best option for investors seeking exposure to the Industrials ETFs segment of the market. Instead, there are better ETFs in the space to consider.
SPDR S&P Transportation ETF (XTN - Free Report) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index. SPDR S&P Transportation ETF has $197.14 million in assets, iShares U.S. Transportation ETF has $866.65 million. XTN has an expense ratio of 0.35% and IYT charges 0.40%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the U.S. Global Jets ETF (JETS)?
Designed to provide broad exposure to the Industrials - Transportation/Shipping segment of the equity market, the U.S. Global Jets ETF (JETS - Free Report) is a passively managed exchange traded fund launched on 04/30/2015.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $1.69 billion, making it one of the larger 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.
Costs
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.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Delta Air Lines Inc Del (DAL - Free Report) accounts for about 11% of total assets, followed by American Airls Group Inc (AAL - Free Report) and United Airls Hldgs Inc (UAL - Free Report) .
The top 10 holdings account for about 61% of total assets under management.
Performance and Risk
Year-to-date, the U.S. Global Jets ETF has gained about 0.58% so far, and was up about 3.85% over the last 12 months (as of 01/09/2024). JETS has traded between $14.74 and $22.18 in this past 52-week period.
The ETF has a beta of 1.46 and standard deviation of 32% for the trailing three-year period, making it a high risk choice in the space. With about 50 holdings, it has more concentrated exposure than peers.
Alternatives
U.S. Global Jets ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. JETS, then, is not the best option for investors seeking exposure to the Industrials ETFs segment of the market. Instead, there are better ETFs in the space to consider.
SPDR S&P Transportation ETF (XTN - Free Report) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index. SPDR S&P Transportation ETF has $197.14 million in assets, iShares U.S. Transportation ETF has $866.65 million. XTN has an expense ratio of 0.35% and IYT charges 0.40%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.