Investor sentiment was positive this morning, to start the busiest day of the earnings season. 11% of the S&P 500 is slated to provide quarterly updates today including Amazon (AMZN), Twitter (TWTR), Caterpillar (CAT) and First Solar (FSLR). Strong results from tech giants Apple (AAPL) and Facebook (FB) boosted stocks yesterday after-hours and in pre-market trading this moring.
The grand reopening is gaining steam. United Airlines (UAL) management recently reported that flights are once again hitting 100% capacity. Yesterday the CDC committed to the safe resumption of cruises sailing from U.S. ports in mid-July. As more and more Americans are making summer travel plans, stocks associated with travel are rising.
The effort to distribute vaccines to countries that are still grappling with the spread of Covid-19 should produce positive results and at some point, international travel will also be safe again. Our trade alert for today highlights a fund dedicated to technology-focused global travel.
The ETFMG Travel Tech ETF (AWAY)
AWAY is the first ETF to provide access to technology-focused global travel and tourism industry. The investment seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Prime Travel Technology Index NTR. The fund invests at least 80% of its total assets inthe index, which tracks the performance of globally exchange-listed equity securities of companies across the globe that are engaged in “Travel Technology Business” which is defined as providing technology, via the internet and internet-connected devices.
The fund is a passively-managed portfolio of companies that, via the internet and internet-connected devices, facilitates travel bookings and reservations, ride sharing and hailing, travel price comparison, and travel advice. To be identified as index constituents, companies must derive majority of their revenue from travel technology business activities, in which those activities are assessed by the index provider from their regulatory filings and other financial reports.
The fund uses proprietary weighting methodology that weights securities based on market capitalization and average daily value traded. The larger and more frequently traded companies will receive a higher score compared to smaller and less traded companies. The three companies receiving the highest score will each receive a weight of 8%, while the next three companies receive 6% weight each and all excess weight is distributed across the remaining securities. The Index is reconstituted and rebalanced during its semi-annual review.
- Weighted Avg. Mkt. Cap. 13.49B
- Price/Earnings Ratio -10.54
- Price/Book Ratio 4.91
- YTD total return 20.79%
- Expense Ratio (net) 0.75%
- Yield N/A
- Net Assets 317.25M
- Number of Holdings 33
- Top Holdings Facedrive (FDVRF), TripAdvisor (TRIP), Airbnb (ABNB)
Where to invest $1,000 right now...
Before you consider buying AWAY, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not AWAY.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.