JETS: A Dynamic, Rules-Based ETF
Learn more about our Airline ETF
It was precisely for these long-term value propositions and more that the U.S. Global Jets UCITS ETF (JETS) was created—to
capture the performance of global companies in not just the commercial airline
industry but also the important aircraft manufacturing and airport and terminal
services subindustries. Before the JETS Airline ETF, no other ETF tracked all three airline
spaces collectively on a global scale.
Below, you can see the
results thus far. JETS has outperformed its chief rival index, the NYSE Arca
Airline Index, since its inception in April 2015.
We like to
call JETS a smart-beta 2.0 ETF. Using a proprietary quant factor model, JETS
seeks to outperform what might be offered by a simple market cap-weighted
product. It seeks to track the U.S.
Global Jets Index (JETSX), a 50-stock index that seeks to provide diversified
access to the global airline industry. JETSX uses various fundamental screens
to determine the most efficient airline companies in the world, and also
diversifies through exposure to global aircraft manufacturers, airport
companies and airline-related internet media and services companies. The
index consists of common stocks listed on developed and emerging market
exchanges across the globe.
As for weighting, the top four American airlines, based on a
ranking of market capitalization, average dollar value traded and load factor,
receive a weight of 10% each. The next eight stocks, with a 3% weighting each,
are U.S. or Canadian airlines, based on a combined ranking of market cap,
average dollar value traded and load factors. The next eight stocks, with a 2%
weighting each, include U.S. or Canadian companies (non-airlines included)
based on a fundamental factor ranking. After that comes the top 10
international companies (excluding the U.S.) based on a fundamental factor
ranking, with a 1% weighting each. Lastly, 20 international companies
(excluding the U.S.) based on a fundamental factor ranking get a weighting of
The portfolio is rebalanced and reconstituted on a quarterly
To learn more about our Airline ETF, please view our fund page for more information.