The travel and airline industry is still recovering from the pandemic but it looks to be on the right path. This year, amid strong travel demand, the International Air Transport Association expects that the airline industry will return to profitability after a tough couple of years due to COVID restrictions.
For investors, that means now may be a good time to invest in airline stocks. And an easy way to do that is to invest in the U.S. Global Jets ETF (NYSE Arca: JETS). The exchange-traded fund (ETF) provides you with exposure to airline companies and manufacturers from all over the globe.
The fund is heavily skewed towards U.S.-based airlines as its top seven holdings are all American, with United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL), and Delta Air Lines (NYSE:DAL) each accounting for more than 11% of the fund's total weight. The largest non-U.S. airline is Air Canada (TSX:AC), which accounts for less than 3% of the fund.
The ETF has a modest expense ratio of 0.6% and with a beta value of close to 1.6, it has been a volatile holding over the past few years. But with hopefully a bit more stability in the industry and oil prices also coming down over the past several months, this could be a much better place to invest in moving forward.
Thus far in 2023, the ETF has risen more than 16%, which is better than the S&P 500's gains of around 4%. It also provides investors with a modest yield of 0.75%.
With better days ahead for the airline industry, this can be a promising ETF to hold in your portfolio right now.
