ETFs are becoming more popular in the world of investment. According to an ETF.com article, investors have contributed $607.7 billion so far in 2021 to U.S.-listed ETFs. SS&C ALPS Advisors launched the ALPS Global Benefits ETF JRNY at the NYSE Arca. This seems to be a good time for new ETFs.
Laton Spahr (President of SS&C ALPS Advisors) has reportedly stated that “SS&C ALPS Advisors continues building a compelling suite on thematic strategies to ETF investors.” As the world’s middle class grows and people want to experience more, we believe that global travel spending will increase. The ETF’s new ETF could provide unique exposure to a potential durable theme.
JRNY: In a Nutshell
Its fund strategy gives you a broad exposure to global travel. The fund tracks the S-Network Global Travel Index which identifies stock exchange-traded by companies who are actively involved in global travel. Portfolio money is invested in airlines, booking agencies and hotels as well as airport services and casinos. It also includes travel-related companies that have been shortlisted using artificial intelligence. This screening includes luxury retail, entertainment and food processing vendors.
JRNY has amassed AUM of $1.2 Million. The expense ratio is 0.65%. It holds three top holdings: The Estee Lauder Company Inc. class A (EL), Walt Disney Co.(DIS), and L’Oreal SA. (OR FP).
Why is JRNY such a desirable choice?
Travel industry received the needed boost due to the U.S. reopening, the rapid rollout of coronavirus vaccine initiatives and strong fiscal stimulus support. The President Joe Biden has presented a highly effective plan for increasing the vaccine rate and controlling the epidemic. According to a CNBC report, he has made COVID-19 mandatory for all federal workers. Biden’s government will issue guidelines to Labor Department asking them to impose vaccine mandates on employers who have more than 100 employees, or run weekly testing. It is expected that the application of booster shots as well as imposition of vaccine mandats will help to reduce coronavirus spread.
Due to its emphasis on the travel sector, this fund is facing stiff competition. We will be discussing a handful of ETFs which seek to profit from this space.
These are some of the options you might consider:
The fund tracks the U.S. and provides exposure for the international airline industry. Global Jets Index. The product has 52 securities. Annual fees for investors are 60 basis points (bps). Fund has raised $3.47 Billion (read: ETFs In Focus on Airlines’ Slowdown Warnings).
ETFMG Travel Tech ETF AWAY
The first ETF to offer direct access the tech-focused global tourism and travel industry, this ETF is unique. The Prime Travel Technology Index NTR is the ETF that follows it, and investors pay 75 bps annually. It holds 34 stocks, with 51.9% being travel bookings and reservations companies. 17.6% is in travel advisory companies. 16.6% shares in travel price comparison companies. AWAY currently has $279.4 Million in assets (read: ETFs will Rise upon Full FDA Approval of Pfizer COVID-19 vaccine).
Defiance Hotel, Airline and Cruise ETF CRUZ
The BlueStar Global Hotels, Airlines, and Cruises Index tracks this product, which measures performance of internationally listed companies that are primarily involved in the travel and tourism industry. CRUZ has 51 stocks and charges 45bps annually for its annual fees. It was launched in June of this year.
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Publiated at Tue 14 Sep 2021, 02:12:42 (+0000).