Airline stocks soared in midday trading on Thursday as investors took in fourth-quarter earnings.
American Airlines (AAL), Southwest (LUV), and Alaska (ALK) all reported earnings on Thursday. Shares of American Airlines gained over 10% on Thursday as the airline beat estimates and posted a $19 million profit during the fourth quarter of 2023.
On Monday, United Airlines (UAL) reported high-than-expected earnings for the fourth quarter and provided a rosy outlook for 2024.
2 ETFs to Consider for Exposure to Airline Stocks
Investors have several options for gaining exposure to the rebounding travel industry via ETFs. Two popular options are the ALPS Global Travel Beneficiaries ETF (JRNY) and the Defiance Hotel Airline and Cruise ETF (CRUZ).
JRNY is made up of 78 holdings, while CRUZ holds 56 securities as of January 24. The ALPS ETF’s additional exposure and diversification may be attractive to many investors.
The fund offers exposure to companies involved in the global travel industry. This includes five segments: booking and rental agencies; airlines and airport services; hotels; casinos and cruise lines; and global travel beneficiaries.
This means that in addition to holding traditional travel stocks, JRNY holds companies that fit the theme but may not be included in other travel ETFs. This includes companies such as Disney (DIS), Uber Technologies (UBER), and American Express (AXP).
JRNY offers global exposure, with 66% of the travel ETF by weight invested in U.S. companies. The fund also offers exposure to companies based in France, Japan, China, Switzerland, and Spain, among others.
Furthermore, the fund tilts toward larger capitalization companies than its ETF segment peer CRUZ. Over 74% percent of JRNY by weight is in large-cap companies, while 54% of CRUZ by weight is in large-caps. JRNY’s large-cap bias could potentially support the fund during periods of market uncertainty and volatility.
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vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for JRNY, for which it receives an index licensing fee. However, JRNY is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of JRNY.
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