Study of Jets
- 08/05/2020 – good to extend payroll aid for airlines
Exclusive: Republican senators back extending $25 billion payroll aid for U.S. airlines; shares jump
WASHINGTON (Reuters) – A group of Senate Republicans on Wednesday backed extending a $25 billion payroll assistance program for U.S. airlines after warnings that carriers may be forced to cut tens of thousands of jobs without government action, according to a letter seen by Reuters
05/31/2020- Good way to invest in airline industry – JETS
This ETF Booms as Investors Bet on Airlines
U.S. Global Jets ETF says flows were lifted by strong interest from individuals and hedge funds
Investors looking to bet on the recovery of the global airline industry have poured hundreds of millions of dollars into a previously small exchange-traded fund over the past three months, bringing its assets under management to almost $1 billion.
The U.S. Global Jets ETF held around $33 million in assets in early March, according to FactSet, but now holds about $950 million. The fund has had net inflows for 62 consecutive trading days, according to FactSet, despite its price falling sharply during that period.
“It was just unprecedented volume explosion,” said Frank Holmes, chief executive and chief investment officer of investment management firm U.S. Global Investors. He said strong interest from individual investors, as well as from hedge funds looking to hedge trades in individual airlines, boosted flows.
The fund, which trades under the ticker JETS, holds about 40% of its assets in the four largest U.S. airlines, Southwest Airlines Co., Delta Air Lines Inc., American Airlines Group Inc. and United Airlines Holdings Inc., with smaller stakes in other U.S. and international carriers. The fund also invests in companies that make equipment for planes and airport operators.
The ETF allows investors to bet on the broad recovery of an industry that has been among the hardest hit by the coronavirus pandemic, instead of forcing investors to bet on specific airlines.
