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3 ETFs Well-Positioned to Benefit From Labor Day Weekend Travel
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Key Takeaways
JETS offers broad exposure to airlines benefiting from strong passenger traffic.
PEZ provides exposure to hotels and other consumer travel-related companies.
XTN targets transportation stocks, including airlines, Lyft and Uber.
As summer winds down, travelers are set to make the most of the Labor Day weekend. Despite surging gas prices, people plan to hit the roads and take to the skies. The Transportation Security Administration (TSA) expects to screen more than 17 million passengers during the Labor Day holiday weekend.
United Airlines expects to carry 300,000 more passengers compared to Labor Day last year, with more than 3.4 million travelers scheduled to fly between Sept. 3 and 8. That translates to roughly 560,000 passengers across 4,700 flights each day. Sept. 4 and Sept. 7 will be its busiest days over the holiday period.
American Airlines expects 3.5 million passengers from Sept. 3 to 8, with nearly 500,000 traveling through its Dallas-Fort Worth hub, as mentioned in Travel Pulse.Domestic airfares are about 2% more expensive this Labor Day compared to the holiday in 2025.
Seattle, Orlando, Boston, Denver and New York top AAA’s domestic destinations, while Rome, Vancouver, London, Dublin and Paris lead international travel. Many are also booking cruises, tours and other vacations early to secure popular trips, per AAA.
For travelers hitting the road, gas prices are expected to be the highest ever for this time of the year. The national average for a gallon of regular gasoline is about $4.14, up 4 cents from last week, per AAA. Domestic hotel bookings are up 9%, while international accommodations are 12% more expensive.
ETFs to Gain
Investors seeking to tap this trend could consider ETFs that stand to profit big time from an upbeat Labor Day travel weekend.
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 55 securities and charges 60 bps in annual fees.
U.S. Global Jets ETF has gathered $723.5 million in its asset base while seeing a heavy trading volume of nearly 3 million shares a day. JETS has a Zacks ETF Rank #3 (Hold).
The underlying Dorsey Wright Consumer Cyclicals Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on U.S. exchanges.
Holding 35 stocks in its basket, the fund has exposure to hotels like Hilton and Marriott. The fund has gathered around $351.9 million in its asset base and charges 60 bps in annual fees. Volume is lower as it exchanges around 70,000 shares a day on average.
State Street SPDR S&P Transportation ETF (XTN - Free Report)
The underlying S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index. The fund is heavy on airline companies, along with exposure to companies like Lyft and Uber.
The fund has an asset base of $344.4 million and trades at a daily average trading volume of 50,000 shares. It charges 35 bps in fees.
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3 ETFs Well-Positioned to Benefit From Labor Day Weekend Travel
Key Takeaways
As summer winds down, travelers are set to make the most of the Labor Day weekend. Despite surging gas prices, people plan to hit the roads and take to the skies. The Transportation Security Administration (TSA) expects to screen more than 17 million passengers during the Labor Day holiday weekend.
United Airlines expects to carry 300,000 more passengers compared to Labor Day last year, with more than 3.4 million travelers scheduled to fly between Sept. 3 and 8. That translates to roughly 560,000 passengers across 4,700 flights each day. Sept. 4 and Sept. 7 will be its busiest days over the holiday period.
American Airlines expects 3.5 million passengers from Sept. 3 to 8, with nearly 500,000 traveling through its Dallas-Fort Worth hub, as mentioned in Travel Pulse.Domestic airfares are about 2% more expensive this Labor Day compared to the holiday in 2025.
Seattle, Orlando, Boston, Denver and New York top AAA’s domestic destinations, while Rome, Vancouver, London, Dublin and Paris lead international travel. Many are also booking cruises, tours and other vacations early to secure popular trips, per AAA.
For travelers hitting the road, gas prices are expected to be the highest ever for this time of the year. The national average for a gallon of regular gasoline is about $4.14, up 4 cents from last week, per AAA. Domestic hotel bookings are up 9%, while international accommodations are 12% more expensive.
ETFs to Gain
Investors seeking to tap this trend could consider ETFs that stand to profit big time from an upbeat Labor Day travel weekend.
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 55 securities and charges 60 bps in annual fees.
U.S. Global Jets ETF has gathered $723.5 million in its asset base while seeing a heavy trading volume of nearly 3 million shares a day. JETS has a Zacks ETF Rank #3 (Hold).
Invesco Dorsey Wright Consumer Cyclicals Momentum ETF (PEZ - Free Report)
The underlying Dorsey Wright Consumer Cyclicals Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on U.S. exchanges.
Holding 35 stocks in its basket, the fund has exposure to hotels like Hilton and Marriott. The fund has gathered around $351.9 million in its asset base and charges 60 bps in annual fees. Volume is lower as it exchanges around 70,000 shares a day on average.
State Street SPDR S&P Transportation ETF (XTN - Free Report)
The underlying S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index. The fund is heavy on airline companies, along with exposure to companies like Lyft and Uber.
The fund has an asset base of $344.4 million and trades at a daily average trading volume of 50,000 shares. It charges 35 bps in fees.