Despite inflation remaining at decades-high levels, the travel industry has continued to see strong demand.
Travel spending was roughly at 2019 levels in July, which marked the fourth consecutive month that spending was at, or above, 2019 levels, according to the U.S. Travel Association.
Investors have several options for gaining exposure to the rebounding travel industry in an ETF wrapper. Two popular options are the ALPS Global Travel Beneficiaries ETF (JRNY ) and the Defiance Hotel Airline and Cruise ETF (CRUZ ).
JRNY is the more diversified of the two offerings and carries an expense ratio of 65 basis points, slightly higher than the category average of 62 basis points. The fund has garnered $12 million in assets under management since its inception in September 2021, according to VettaFi.
Made up of 80 holdings, JRNY’s top holdings currently include Airbnb Inc (ABNB), LBMH Moet Hennessy Louis Vuitton SE (MC), American Express Company (AXP), L’Oreal S.A. (OR), and Booking Holdings Inc. (BKNG) as of September 18.
CRUZ is the cheaper option in the segment, carrying an expense ratio of 45 basis points. Incepted in June 2021, CRUZ has $38 million in assets under management.
Composed of 57 holdings, CRUZ’s top holdings include Marriott International Inc. (MAR), Hilton Worldwide (HLT), Delta Air Lines Inc. (DAL), Carnival Corporation (CCL), and Southwest Airlines Co. (LUV) as of September 18.
Consumer leisure demand persists, making now a potentially good time to enhance portfolios with higher exposure to travel and leisure.
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vettafi.com is owned by VettaFi, which also owns the index provider for JRNY. VettaFi is not the sponsor of JRNY, but VettaFi’s affiliate receives an index licensing fee from the ETF sponsor.