Best and Affordable Airline ETFs to Invest in Now
Investing in ETFs is one of the smartest ways to access the stocks of companies across the world. Airline ETFs, for instance, comprise high assets and low costs which compared to funds investing in the airline industry is comparatively better.
However, before investing in airline ETFs, you should understand how it works and the best platforms to leverage to get the best ROI. In this article, I discuss what airline ETF investment is and how it works. Further, I cite some quality airline ETFs surging high in 2022 that you should consider investing in for good profits.
What are ETFs, Airline ETFs?
The term, “ETFs”, is an acronym for “Exchange-traded funds” which is a form (or shares attributes) of mutual funds and conventional stocks. It is professionally managed just like in traditional mutual funds settings but this one offers a diversified portfolio of investments.
Airline ETFs are exchange-traded funds invested primarily in aviation companies’ stocks and companies involved in passenger airline services, aircraft manufacturing, air cargo and logistics, airport services, and, so on. Examples of stocks in the aviation industry are Delta Airlines (DAL), American Airlines (AAL), and United Airlines (UAL).
Like most ETFs, airline ETFs track the performance of an underlying index, which in this case includes stocks of companies in the aviation industry.
Why Should You Invest in Airline ETFs?
If you are wondering why you should invest in airline ETFs, then it would interest you to know that the aviation industry is relatively undervalued and that with more people flying today than before, the growth potential is enormous.
For instance, in the USA, about 44,000 flights take off every day. As flight tickets keep getting cheaper, airlines serve more passengers and make more profits which is a great opportunity for ETFs investors to make profits and great returns on investment.
Currently, the aviation industry generates about $35.5 billion in profits in a year. And they expect the number of passengers to rise to 8.2 billion in the coming years meaning more profit. If you are a long-term investor, it will be wise to pursue investments in the aviation industry.
Best and Affordable Airline ETF to Invest In
1. U.S. Global Jets ETF (JETS)
JETS was established in 2015 and from that time till now has acquired a lot of assets and attracted a lot of interest. JETS is one of the heavily invested stocks in the US aviation industry. They are the only exchange that exclusively tracks and holds shares in the aviation industry.
Below are some of the company’s key features:
- Issuer: US Global Investors
- Net worth: $51 million
- YTD performance: + 2.62%
- Expense ratio: 0.6%
- Price: $28
JETS is good for you if you want to focus only on Delta or United airlines. Aside from comprising mostly airline stocks, JETS also has investible assets in aircraft manufacturers, terminal services, and airports.
If you want broader diversification with investment in stocks within the transportation sector, especially in the aviation industry, IYT is one of the best and most affordable airline ETFs to invest in. This means that in addition to the airline sector, IYT also operates in the rail, freight, truck, and ship sectors and you can buy stocks (ETFs) in these sectors as well.
3. SPDR S&P Transportation ETF (XTN)
XTN is one of the popular and promising operators in the transportation sector and the aviation industry in particular and you can buy airline ETFs from them. This company has a high amount of shares in the aviation industry and also tracks shares in the transportation sector. XTN is heavily vested in truck stocks at around 34% while Airline shares make up about 24% of that amount.
Conclusion
Investing in quality airline ETFs is a smart way to directly invest in the stocks of companies in the aviation industry. More so, this investment becomes plausible when the ETFs are affordable. This article exposed to you some of the best airline ETFs to invest in. I hope that with what you’ve learned thus far you will make the right choice in your ETFs investments. Have a pleasant day ahead.
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