Airline ETF Tops: 6 High-Flying Stocks of Last Week

U.S. Global Jets ETF JETS, the only pure-play ETF dedicated to the airline industry, topped the list of the best-performing ETFs of last week with impressive returns of about 33.1%.

The impressive rally was primarily driven by improving passenger traffic. With the reopening of the economy, most of the air carriers are adding back flights ahead of the peak summer travel season, indicating that air travel will gain speed this summer. In fact, most of U.S. airlines are trading at their highest levels since mid-March (read: Post-Lockdown Travel Plans to Impact These ETFs).

The bullish bets on the industry have been raging ahead in recent weeks as millennial day traders look to cash in on assets hit hard by the coronavirus pandemic. Per Bloomberg, ETF inflows surged nearly 3000% in just three months, taking its AUM to more than $1 billion. The fund had only $33 million in its asset base in early March.

According to the data from Robintrack, the ETF’s popularity on retail investing platforms has exploded with the number of Robinhood users holding JETS surging to 30,000 last week from 500 in early March.

Let’s take a closer look at the fundamentals of JETS.

JETS in Focus

This fund provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. In total, the product holds 40 securities with highest concentration on the four largest U.S. carriers. American firms account for 81.4% of assets while Brazil, Mexico, United Kingdom and France round off the next countries.

The ETF has gathered $1.6 billion in its asset base while sees solid trading volume of nearly 2.3 million shares a day. It charges investors 60 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Airline ETF Flying With Billion Dollars in AUM).

Though most of the stocks in the fund’s portfolio delivered strong returns, a few have gained more than 35%. Below we have highlighted the six best-performing stocks in the ETF with their respective positions in the fund’s basket:

Best-Performing Stocks of JETS

American Airlines Group Inc. AAL: This Texas-based company operates as a network air carrier. It provides scheduled air transportation services for passengers and cargo. The stock gained 77% last week and occupies the top position in the fund basket with 14.1% share. It has a Zacks Rank #3 (Hold) and a Value Score of B.

Spirit Airlines Inc. SAVE: This Florida-based company provides low-fare airline services. It occupies the seventh position in the fund’s basket with 4.3% allocation. It also delivered incredible returns of 74.7% last week. The stock has a Zacks Rank #3 and Value Score of B.

Gol Linhas Aereas Inteligentes S.A. GOL: This Brazil-based company provides air passenger transportation services in Brazil and rest of South America, the Caribbean, and the United States. The stock surged 71.8% last week. It currently carries a Zacks Rank #2 (Buy) and has a Value Score of A. Gol Linhas accounts for 1.4% of total assets. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

United Airlines Holdings Inc. UAL: This Illinois-based carrier provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The stock takes the third spot in the fund’s basket with 10.7% of the assets. It gained 51.2% last week. UAL has a Zacks Rank #3 and Value Score of B.

JetBlue Airways Corporation JBLU: This New York-based is a passenger airline that focuses on providing high-quality customer service. JetBlue occupies the ninth position in the fund’s basket with 4% allocation. It gained 35.9% last week. The stock has a Zacks Rank #3 and Value Score of B.

Delta Air Lines Inc. DAL: This Georgia-based airline provides scheduled air transportation for passengers and cargo in the United States and internationally. It gained 35.5% last week and occupies the fourth position in the fund basket with 9.9% share. The stock has a Zacks Rank #3 and Value Score of B.

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JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
 
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
 
Gol Linhas Aereas Inteligentes S.A. (GOL) : Free Stock Analysis Report
 
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
 
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
 
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
 
U.S. Global Jets ETF (JETS): ETF Research Reports
 
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