Launch of Europe’s first global airline industry ETF offers investors pure play exposure to the rebounding airline industry
- Europe’s first global
airlines ETF, U.S.Global Jets UCITS ETF (ticker: JETS) to
list on London Stock Exchange in June 2021.
- The JETS airline ETF
is designed to capture the performance of global companies in the commercial
airline, aircraft manufacturing, and airport & terminal services
industries.
- JETS tracks the
U.S. Global Jets Index which achieved
back-tested returns of 57.32% in the past 12 months and 19.28% since inception[1] (30/06/2011).
Past performance is no guarantee of future performance.
-
JETS is the
sister product to the highly successful, US listed 40 ACT ETF, US Global Jets
ETF (ticker: JETS) which has over $4bn assets under management
- JETS is
distributed on the HANetf platform alongside its growing range of thematic ETFs
and exchange traded cryptocurrencies and commodities.
14th June 2021, London
The launch of Europe’s first global airlines ETF, U.S. Global Jets UCITS ETF (ticker: JETS) ‘JETS’ on the HANetf platform
will deliver exposure to the airline industry as it tracks companies within the
commercial airline, aircraft manufacturing, and airport & terminal services
industries. The JETS airline ETF will list on the London Stock Exchange
in June and will be passported for sale across Europe.
Pre-COVID, the airline industry
was booming as carriers streamlined operations, improved their balance sheets,
and managed to grow profits by introducing more ancillary (non-ticket) fees.
The coronavirus disrupted the industry tremendously, but as vaccinations start
ramping up around the world and the global economy re-opens, investors are now
presented with a unique opportunity to access the recovery story.
There is no doubt that 2020 was a
difficult 12 months for airline stocks, but from a value investor’s
perspective, this means the industry is on sale at a deep discount. Commercial
aviation still has some challenging times ahead of it, but leisure travel has
already begun to recover and the big four U.S. carriers - American, United,
Delta and Southwest – are all up double or triple-digits for the 12 months
ended March 23 2021 [2].
With our airlines ETF, investors will gain broad
exposure to international airlines, which is crucial, as the emergence and
growth of the middle class in the developing world has arguably been one of the
most important factors in the worldwide rise in air travel demand.
As the coronavirus pandemic
slows, vaccines roll out and the global economy opens back up, the U.S. Global Jets UCITS ETF is well
positioned to capitalise on the regeneration of the airline industry. The ETF
will have a Total Expense Ratio of 65bps. JETS tracks the U.S.
Global Jets Index which achieved back-tested returns of 57.32% in the
past 12 months[3]
and 19.28% since inception (30/06/2011). Past performance is no guarantee of future performance. When
you trade ETFs your capital is at risk.
US Global Investors listed their US
Global Jets ETF in the US in 2015 and it is now one of the prime ways to invest
in the airline industry using an exchange traded fund. Assets under management currently
stand at just over $4bn AUM[1].
US Global Investors will bring all the expertise the have garnered running this
ETF and now provide it to European investors in a UCITS ETF for the first time.
Frank Holmes, U.S. Global
Investors, Inc. CEO and Chief Investment Officer said: “Here in the U.S., leisure travel is
steadily recovering as the total number of vaccines administered approaches 300
million. The EU, on the other hand, has
administered roughly 200 million vaccines as of May 17, while daily new
infections are dropping but remain elevated compared to the U.S. Therefore, we
still believe there is great upside potential in terms of European commercial
flight demand, especially now that EU officials have agreed that member states
should start allowing fully vaccinated foreigners to visit.
Like U.S. investors, Europeans are signalling that they
want investment vehicles that seek to capitalize on the reopening of the global
economy. According to the European Fund and Asset Management Association’s
(EFAMA) review of investment trends in 2020, UCITS net assets increased 7.6%
during the year, with much of this growth occurring in the fourth quarter, when
vaccine breakthroughs raised hopes that travel restrictions would be ending
sooner rather than later. I believe our upcoming UCITS airlines
ETF, U.S. Global Jets UCITS ETF , in collaboration with
HANetf, will meet EU and United Kingdom investors’ demand for such a product.”
Hector McNeil co-Founder and
co-CEO at HANetf said “It’s no secret that the travel
industry has suffered tremendously as a result of the coronavirus pandemic.
However, as the light at the end of the tunnel begins to shine more brightly, many
investors will have rightly identified the sector as one of the key recovery
stories of 2021.
As restrictions are lifted, we expect the pent-up desire
for international travel to quickly be realised and as such, have launched the
U.S. Global Jets UCITS ETF (JETS) as a means to offer investors exposure to the
rejuvenated sentiment surrounding the Airline industry.
As JETS has a US listed, sister ETF with $4bn assets
undermanagement and 6 years’ track record, it shows the value of the HANetf
model in providing an efficient way for US and global managers to access the
European ETF market in a very efficient manner. We are very excited to partner
with such an experienced manager and offer this ETF to European investors. It clearly shows the value add and
differentiation of the HANetf platform versus the multiplicity of ‘supermarket’
ETF providers.”
Our range of thematic ETFs is witnessing exponential
growth, as opportunities to develop products born out of both necessity and
innovation continue to present themselves. We are thrilled to offer the
European ETF market its first pure-play Global Airlines Industry ETF and look forward
to announcing more fund launches in the near future.”
Visit the U.S. Global Jets UCITS ETF Fund page