3 Best Travel ETFs To Invest In
Written by
Dawn Allcot
Edited by
Nicholas Morine
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For many investors, exchange traded funds (ETFs) represent an easy way to build a diversified portfolio. ETFs are collections of stocks in a similar industry. While technology-focused ETFs like the Vanguard Information Technology ETF are hot right now, according to U.S. News & World Report, you can also find tremendous value in other sectors.
For instance, as Americans gear up for the spring and summer travel season, it’s a good time to invest in travel stocks through these ETFs.
U.S. Global Jets ETF (JETS)
U.S. Global Jets is the only ETF focused exclusively on airlines, per VettaFi’s ETF Database. The top stocks in the portfolio include United Airlines Holding Inc., American Airlines Group, and Delta Airlines, Inc. As major airlines continue to rebound following the pandemic, many carriers’ stocks are currently undervalued, making JETS a deal for investors. The ETF also holds companies focused on transportation infrastructure, commercial airlines services and the internet.
The ETF sells for roughly $20 per share, down more than $10 from its five-year high, but slowly rising since the last quarter of 2023.
Defiance Hotel, Airline and Cruise ETF (CRUZ)
If you’d like to invest in quality travel brands like Hilton, Marriott, Intercontinental Hotels, Royal Caribbean Cruises — plus Delta Airlines, Southwest Airlines, and others — without managing a large collection of stocks, Defiance’s Hotel, Airline and Cruise ETF (CRUZ) has you covered.
Like JETS, CRUZ is on the rise, trading at just over $22 right now. Started in 2021, Defiance Hotel Airline and Cruise ETF seeks to take advantage of post-pandemic travel recovery with investments in household travel industry names.
Amplify Travel Tech ETF (AWAY)
More people today than ever use mobile apps and digital platforms to plan and book their trips. You may be able to capture a piece of those profits by investing in Amplify Travel Tech ETF. Major holdings include Airbnb, Expedia Group, Lyft and MakeMyTrip.
One study found that two-thirds of millennials use their smartphone to book a trip, while nearly three-quarters use it for research, according to AmplifyETFs.com. That number is expected to grow as artificial intelligence makes travel planning through apps even more intuitive, creating a tailored and personalized experience for every user.
For just over $20 per share, the Amplify Travel Tech ETF shows plenty of promise as an investment with a solid future.
Final Note
Last year, travel stocks rose roughly 27%, according to Skift Research’s Skift Travel 200, which tracks the performance of nearly 200 travel companies. This exceeds the S&P 500’s 10% average return in the first quarter of 2024.
Plus, for frequent travelers, investing in travel ETFs gives you an opportunity to support companies you know and understand, which is one of Warren Buffett’s main tenets of smart investing. With consumer travel set to surge this spring, according to a report from Nationwide Travel Insurance, you can capitalize on the profitability of hotels, airlines, tourist experiences and travel booking engines in 2024 with relative ease.
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