LUV - JETS: As 'Revenge Travel' Fades This ETF's Prospects Do Too

2024-07-08 08:33:23 ET

Summary

• U.S. Global Jets ETF is a leader in transportation sector with over $1.1 billion in assets and $40 million in daily trades.
• I expect JETS to have at best modest return potential over the next 6-12 months, with the chart pattern mediocre, and the fading of so-called post-pandemic "revenge travel."
• The airline industry shows signs of recovery post-pandemic, but lingering issues like high labor costs and inconsistent fuel costs remain.

The U.S. Global Jets ETF ( JETS ) is in its 10th year of existence, and accumulated assets of more than $1.1 billion, making it the leader in this sub-segment of the transportation sector. It is actively traded, as more than $40 million a day changes hands in this ETF. But there's more to an ETF than tenure and asset size, and so while I follow it as one of many industry-specific access points within the more than 100 ETF I track regularly, it appears to be at best a flat-return story over the next 6-12 months....

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