Global travel stocks continue their rally into the final days of January, outpacing broader markets and pushing the ALPS Global Travel Beneficiaries ETF (JRNY ) higher.
JRNY has increased 16.13% year to date as of January 27, while the SPDR S&P 500 ETF Trust (SPY ) has increased 6.08% during the same period, each on a total return basis, according to ETF Database.
Global travel stocks have continued to rally on China’s reopening amid its recent decision to move away from its zero-COVID policy, effectively lifting quarantining requirements for incoming travelers for the first time since the beginning of the pandemic. This has resulted in a spike in airline bookings in China.
Over the past week, industry giants American Airlines (AAL), Southwest Airlines (LUV), JetBlue Airways (JBLU), and Alaska Air Group (ALK) have reported fourth-quarter 2022 earnings. Each company reported high demand for air travel, offset by high fuel costs liming bottom-line growth.
Earlier this month, the number of people traveling by airplane is at a level equal to pre-pandemic levels, according to Transportation Security Administration data.
Composed of 79 holdings, JRNY’s top holdings currently include LVMH Moet Hennessy Louis Vuitton SE (MC), Booking Holdings Inc (BKNG), Estee Lauder Companies Inc (EL), Walt Disney Company (DIS), Marriott International Inc (MAR), American Express Company (AXP), Hilton Worldwide Holdings Inc (HLT), and Cintas Corporation (CTAS), according to ETF Database.
Nearly 64% of the fund’s holdings are U.S. companies. JRNY also offers exposure to France (9.33%), Japan (4.69%), China (4.26%), Switzerland (3.35%), Spain (2.36%), Mexico (1.81%), among others, according to ETF Database.
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vettafi.com 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.