Is JETS US Global Jets ETF A Good Buy?
πππAirline travel has rebounded above pre Covid highs. As a result, $U.S. Global Jets ETF(JETS)$ has soared 33% in 2024 and in 2025, JETS look set to soar even higher. That is even better than $SPDR S&P 500 ETF Trust(SPY)$
JETS represents the best and strongest US Airline Giants as well as other airlines companies globally plus aircraft manufacturers and airport companies.
The Top 10 holdings include Southwest Airlines, United Airlines, American Airlines, Delta Airlines, Frontier Group, Allegiant Travel Company, JetBlue Airways, Alaska Air, Sun Country Airlines, SkyWest and Air Canada.
Other holdings include Trip Advisor, Boeing Company, Expedia Group, Booking Holdings,Trip. com. Qantas Airways, Singapore Airlines, SATS and many more.
The Top 10 weightage is 61%. Total number of holdings is 51. The expense ratio is 0.60%. Assets Under Management is USD 1.06 billion.
The airline stocks led the travel industry with United Airlines $United Continental(UAL)$ Allegiant and $American Airlines(AAL)$ on record highs in 2024. Even with the pullback, the airlines industry stock group is up 81% from August last year.
Airlines are brimming with optimism for 2025. Alaska Airlines, fresh off its acquisition of Hawaiian Airlines, recently announced a USD 1 billion share buyback and issued strong financial guidance for 2025. Alaska Air $Alaska Air(ALK)$ was one of the Top performers of 2024, gaining 64%. It expects to post full year earnings of USD 5.75 per share in 2025, exceeding Wall Street's estimates.
American Airlines $American Airlines(AAL)$ raised its profit expectations for the final months of 2024 due to robust holiday demand, higher fares and lower fuel costs. Southwest Airlines also lifted its revenue outlook, citing resilient travel demand and changes to its revenue management practices.
Looking ahead to 2025, the IATA projects total industry revenues to top USD 1 Trillion for the first time in aviation history. Passenger numbers are expected to soar to 5.2 billion, a 6.7% increase from 2024 and another all time high.
A recent Bloomberg Intelligence Survey found that 36% of US travellers plan to take vacations in 2025, up from 28% the previous year. High income households are leading the charge with 65% of those earning over USD 150,000 prioritising vacations. This is a critical demographic for airlines, as premium travellers generate a disproportionate share of profits.
Boeing's production restart is a signal that the industry 's supply side challenges are being addressed. Meanwhile, surging demand and record breaking projections for 2025 suggest that airlines are on the cusp of a new era of profitability.
Wall Street Analysts are bullish on JETS with a Buy rating, Target price of USD 27.87, an upside potential of 9%. This is according to 31 analysts surveyed by Tipranks.
I like JETS as it is a low cost way to invest in the fast growing travel industry. With a wide diversification of 55 stocks in this ETF, I do not have to decide which airline stock to choose per se and if any negative news affect any particular company, the effect is not as devastating. JETS also does the heavy lifting for me to choose the top performing airline companies and weed out the non performing ones. So that is Win Win formula for me.
Investing does not have to complicated. With JETS ETF I can enjoy the best airlines stocks at minimum cost!
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Fantastic ππ»