We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Invest in the U.S. Global Jets ETF (JETS)?
Read MoreHide Full Article
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.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways 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 14, placing it in bottom 13%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $1.47 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.
Costs
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 2.12%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, American Airls Group Inc (AAL - Free Report) accounts for about 14.12% of total assets, followed by Southwest Airls Co (LUV - Free Report) and United Airls Hldgs Inc (UAL - Free Report) .
The top 10 holdings account for about 72.09% of total assets under management.
Performance and Risk
The ETF has lost about -41.37% and is down about -37.78% so far this year and in the past one year (as of 06/17/2020), respectively. JETS has traded between $12 and $32.30 during this last 52-week period.
The ETF has a beta of 1.44 and standard deviation of 39.36% for the trailing three-year period, making it a high risk choice in the space. With about 40 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 SP Transportation ETF (XTN - Free Report) tracks S&P Transportation Select Industry Index and the iShares Transportation Average ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index. SPDR SP Transportation ETF has $167.88 million in assets, iShares Transportation Average ETF has $615.90 million. XTN has an expense ratio of 0.35% and IYT charges 0.42%.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways 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 14, placing it in bottom 13%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $1.47 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.
Costs
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 2.12%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, American Airls Group Inc (AAL - Free Report) accounts for about 14.12% of total assets, followed by Southwest Airls Co (LUV - Free Report) and United Airls Hldgs Inc (UAL - Free Report) .
The top 10 holdings account for about 72.09% of total assets under management.
Performance and Risk
The ETF has lost about -41.37% and is down about -37.78% so far this year and in the past one year (as of 06/17/2020), respectively. JETS has traded between $12 and $32.30 during this last 52-week period.
The ETF has a beta of 1.44 and standard deviation of 39.36% for the trailing three-year period, making it a high risk choice in the space. With about 40 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 SP Transportation ETF (XTN - Free Report) tracks S&P Transportation Select Industry Index and the iShares Transportation Average ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index. SPDR SP Transportation ETF has $167.88 million in assets, iShares Transportation Average ETF has $615.90 million. XTN has an expense ratio of 0.35% and IYT charges 0.42%.
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.