Social distancing and lockdown measures certainly did a number on Uber’s second quarter revenue, which saw a decline in revenue by 29%. This will put certain exchange-traded funds (ETFs) on investors’ watchlists moving forward.
“During the period ending June 30, 2020, the coronavirus pandemic continued to limit people’s travel and commuting, and to weigh heavily on Uber’s core ride-hailing business, sending gross bookings down 73% in constant currency measurements,” the CNBC article noted. “The pandemic did drive demand for Uber’s food delivery business, however, and bookings were up 113% there.”
One ETF to keep an eye on with Uber exposure is the *Renaissance IPO ETF (IPO )*. IPO seeks to replicate the price and yield performance of the Renaissance IPO Index, which is a portfolio of companies that have recently completed an initial public offering (“IPO”) and are listed on a U.S. exchange.
Another fund to watch is the ETFMG Travel Tech ETF (AWAY). AWAY seeks to provide investment results that correspond generally to the total return performance of the Prime Travel Technology Index NTR, which tracks the performance of globally exchange-listed equity securities of companies across the globe that are engaged in “Travel Technology Business” which is defined as providing technology, via the internet and internet-connected devices.
Moving Forward with Transportation ETFs
Leverage-hungry traders sensing an opportunity can look to funds like the Direxion Daily Transportation Bull 3X Shares (TPOR). TPOR seeks daily investment results equal to 300 percent of the daily performance of the Dow Jones Transportation Average, which measures the performance of large, well-known companies within the transportation industry.
Other transportation ETFs to watch:
- iShares Transportation Average ETF (IYT ): seeks to track the investment results of the Dow Jones Transportation Average Index composed of U.S. equities in the transportation sector. The underlying index measures the performance of large, well-known companies within the transportation sector of the U.S. equity market.
- SPDR S&P Transportation ETF (XTN ): seeks to provide investment results that correspond generally to the total return performance of an index derived from the transportation segment of a U.S. total market composite index. The index represents the transportation segment of the S&P Total Market Index (“S&P TMI”).
- US Global Jets ETF (JETS ): seeks to track the performance of the U.S. Global Jets Index, which is composed of the exchange-listed common stock (or depository receipts) of U.S. and international passenger airlines, aircraft manufacturers, airports, and terminal services companies across the globe.