New Trade for August 11th 2020

Futures this morning are signaling a continuation of yesterday’s mixed bag.  Tech is the weak spot again with the Nasdaq slightly lower pre-market after falling 0.5% during the previous session.  The Dow and the S&P are adding to yesterday’s gains pre-market on positive vaccine news from Russia. 

Select industries are rallying.  Travel related stocks are taking off.  Yesterday the TSA reported its highest screening numbers since March 17th.  It would appear that the U.S. is starting to open up.  Maybe we’re just getting used to living with the virus.  Either way it’s been positive for airline stocks which are adding to yesterday’s gains in pre-market trading this morning.  

Second-wave coronavirus fears have cautious investors skeptical about the airlines, and for good reason.  Airlines and travel may not be out of the woods yet.  And if the virus continues to halt travel plans some companies may not be able to survive.  Today we are highlighting a diversified airline bet which offers investors a less risky way to be involved in the resumption of air travel.  

The U.S. Global Jets ETF (JETS) tracks the performance of the U.S. Global Jets Index.  The Index is composed of U.S. and international passenger airlines, aircraft manufacturers, airports and terminal services companies.  

Among JETS current top holdings are the major U.S. players – UAL, DAL, AAL and LUV.  Also included in the mix are important International interests like Grupo Aeroportuario del Centro Norte S.A.B. de C.V. ADR, Airports of Thailand, Singapore Airlines Ltd. and the like from around the globe.  

A few key numbers for JETS:

  • 0.6% expense ratio
  • 13.70 P/E
  • 1.96 P/B
  • Market Cap 1.4 billion
  • Net assets 1.16 billion

Yesterday the JETS ETF closed at its highest level since June 19th and could be on its way to testing those early June highs and beyond.