Travel and tourism ETFs to benefit from easing US travel restrictions

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TThe United States is likely to ease travel restrictions for international visitors vaccinated against COVID-19 in November, including those from the United Kingdom and the EU, the White House recently said as quoted on CNBC. Foreigners visiting the United States will be required to show proof of vaccination and a negative COVID-19 test taken within three days of departure. The latest White House announcement came after the peak summer travel season, indicating strong demand for vacation travel.

Airlines have urged the Biden administration to lift the rules, which has rocked demand for international travel. The changes will take effect in early November, making it easier to book vacation. European and British authorities have lifted entry bans for the United States and other visitors due to greater vaccine availability. Letting more international travelers into the United States would have a huge impact on industries, including airlines, retail, and restaurants.

“Vacation leisure bookings from inbound sightseeing tours and from non-US citizens visiting friends and relatives will accelerate in the coming weeks,” said Jonathan Root, senior vice president of Moody’s Investors Service, in an emailed statement, quoted on CNBC. A stronger increase in business travel by the first quarter of 2022 is also expected.

Against this background, below we present a few ETFs from the travel and tourism sector that may be ahead.

Focus on ETFs

ETF US Global Jets JETS

The underlying US Global Jets Index tracks the performance of airlines around the world with a focus on domestic passenger airlines. The fund charges 60 basis points in fees. American Airlines (10.36%), Southwest Airlines (10.17%) and Delta Airlines (10.06%) are the three largest stocks in the fund.

The Defiance Hotel, airline and cruise ETF CRUZ

The Underlying BlueStar Global Hotels, Airlines and Cruises Index is a rules-based index that consists of globally listed stocks of companies that derive at least 50% of their revenues from the airline industry. of passengers, hotels and resorts or cruises. The fund charges 45 basis points in fees. Marriott (8.36%), Hilton (6.62%) and Carnival Corp (6.61%) are the three largest stocks in the fund.

ALPS Global Travel Beneficiaries ETF JRNY

The underlying S-Network Global Travel Index identifies publicly traded stocks of companies that are materially engaged in the global travel industry. The fund charges 65 basis points of fees. Marriot (4.81%), Booking Holdings (4.67%) and American Express (4.65%) are the top companies in the fund (read: SS&C ALPS Advisors Launches Travel ETF (JRNY)).

ETFMG Travel Tech ETF AWAY

The fund tracks the Prime Travel Technology Index NTR, charging investors a 75bp annual fee. The fund has 34 stocks in its basket, with travel reservation and booking companies accounting for 51.9% of assets, followed by 17.6% travel consulting companies and 16.6% price comparison companies. of travel. Booking Holdings (5.35%), Airbnb (4.52%) and Uber Technologies Inc (4.25%) are the three main holdings of the fund.

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ETFMG Travel Tech ETF (AWAY): ETF Research Reports

ETF US Global Jets (JETS): ETF Research Reports

Defiance Hotel, Airline and Cruise ETF (CRUZ): ETF Research Reports

ETF ALPS Global Travel Beneficiaries (JRNY): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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