ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Building Blocks Channel
  2. Play Airlines the Cautious Way With JRNY
ETF Building Blocks Channel
Share

Play Airlines the Cautious Way With JRNY

Tom LydonDec 13, 2021
2021-12-13

The travel and leisure industry is climbing its way back from the worst days of the coronavirus pandemic, but the various sub-industry segments in this group don’t move in unison.

That’s something for investors to keep in mind, particularly when it comes to airline stocks — a market segment that often frustrates investors. Among exchange traded funds, the ALPS Global Travel Beneficiaries ETF (JRNY B-) provides an alternative to direct airline exposure.

JRNY, which tracks the S-Network Global Travel Index, offers airline exposure, but the fund’s course isn’t solely determined by that often-volatile industry. That could be a point in JRNY’s favor, as the global airline recovery could be muted.

“Rising vaccine coverage, particularly in large economies that provide much of the base for air travel demand, along with loosening border restrictions are expected to drive a material rebound in traffic,” says Fitch Ratings. “However, potential outbreaks, lingering restrictions, and a slower rebound in business travel will keep travel below 2019 levels until 2024.”

Airline equities are more of a complement to a broader portfolio than a primary source of price action in JRNY. Think of the ETF’s airline exposure as a potential sweetener in a comprehensive basket of travel equities, some of which are already exhibiting strength. For investors, JRNY’s diversification is relevant because airline stocks could encounter turbulence in 2022.

“While Fitch expects a significant recovery in business travel driven by companies returning to office and growing Zoom fatigue, the degree of the recovery remains uncertain. Lower levels of business demand may contribute to margin pressures as the business cabin is typically the highest margin contributor, particularly for legacy carriers,” adds Fitch.

JRNY can offset those issues with other holdings, such as casino operators. In the U.S., the gaming industry set an annual revenue record. That’s a sign that Americans want to get out and travel again, which could benefit airlines. Moreover, strength in the casino space could be indicative of a healthy consumer providing benefits to other JRNY member firms, such as luxury retailer, food, and beverage names.

“In spite of the Omicron variant, we remain bullish on the domestic casino recovery, particularly in Las Vegas, where record earnings are poised to accelerate with the expected return of international visitors and convention business throughout 2022 and 2023,” writes CBRE analyst John DeCree in a recent note.

Other travel and leisure ETFs include the VanEck Vectors Gaming ETF (BJK C+) and the U.S. Global Jets ETF (JETS C+).

For more news, information, and strategy, visit the ETF Building Blocks Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X