With Summer here and the pandemic finally relenting at least a little bit, people are taking to the airways and the open roads in what is being called revenge travel. Airlines, Cruise Lines and Hotels stand to benefit a great deal from the travel boom, and these are the ETFs to play that trend.
AdvisorShares Hotel ETF (BEDZ) – Expert analysis believes that by 2026, global hotel revenue will reach around $480 billion compared to $300 billion this year. BEDZ is primarily invested in the hotel industry but also tracks some travel services. As summer approaches BEDZ will look to benefit from a busy travel season. BEDZ is down 24% YTD and its top three holdings are, Bluegreen Vacations Holding Corp 7.98%, Target Hospitality Corp. 6.51%, and Red Rock Resorts, Inc. 6.38%.
Defiance Hotel, Airline, and Cruise ETF (CRUZ) – As the pandemic comes to a close we are seeing new growth in the travel industry and as more people are working remotely there is more room to blend travel and work. CRUZ is looking to benefit from increased travel, following the BlueStar Global Hotels, Airlines, and Cruises Index which tracks 55 stocks. The global luxury travel market is expected to grow on a compound annual growth rate of 8.8% through 2028 which would significantly benefit CRUZ. CRUZ is down 28% YTD and its top three holdings are, Marriott International, Inc. 9.13%, Hilton Worldwide Holdings Inc 8.36%, and Delta Air Lines, Inc. 6.03%.
ETFMG Travel Tech ETF (AWAY) – AWAY is the first ETF of its kind, giving investors direct access to technology companies within the travel and tourism industry. AWAY tracks the Prime Travel Technology Index NTR which looks to track companies helping to pave the new era of travel. A statistic used in AWAYs methodology is that 66% of millennials will book their travel from their smartphone and 74% will use it to research travel. AWAY is down 26% YTD and its top three holdings are, Tongcheng Travel 4.76%, TravelSky Technology 4.63%, and Uber Technologies Inc 4.43%.
U.S. Global Jets ETF (JETS) – As the name suggests, JETS gives investors access to the global airline industry as well as manufacturers from all around the world. If the summer season proves to be as busy as expected JETS will be in a prime position to grow as it is solely invested in air transportation. JETS tracks the U.S. Global Jets Index, comprised of U.S. and international airlines, manufacturers, and airports. JETS is down 23% YTD and its top three holdings are, Southwest Airlines Co 9.66%, United Airlines Holding Inc 9.52%, and American Airlines Group Inc 9.38%.