U.S. Global Investors Announces Its Airlines ETF, the U.S. Global Jets ETF (JETS), Crosses Above $1 Billion in Assets
June 04 2020 - 9:56AM
U.S. Global Investors, Inc. (NASDAQ: GROW) is thrilled to announce
that assets under management (AUM) in the U.S. Global Jets ETF
(JETS) crossed above $1 billion for the first time ever as of
Tuesday, June 2. That’s a 30-fold increase from the $33.18 million
in AUM as of March 2, its recent low. The smart-beta 2.0 ETF—the
only pure-play airlines investment product currently available,
with a distinctive portfolio structure that uses five key factors
to pick stocks—also saw record daily trading volume of 12.6 million
shares on May 27.
In the weeks since airline stocks fell 50 percent due to
coronavirus-related travel restrictions, JETS has seen significant
inflows by deep-value investors and hedge funds seeking exposure to
an industry that most consider essential in today’s interconnected
world. These inflows have accelerated as the outlook for an
effective COVID-19 vaccine has become more promising, pushing
airline stocks higher.
“This is by far the most exciting thing to happen to JETS since
its debut in 2015,” explains Frank Holmes, CEO and chief investment
officer. “Most fund groups probably wouldn’t have kept a product on
the shelf for five years if it had under $100 million in assets,
but we believed so strongly in JETS that we continued to offer it
to investors. Our patience and commitment to keeping the ETF alive
has been greatly rewarded.
“We’ve seen an explosion in the number of retail investors who
hold JETS,” continues Mr. Holmes. “In the three months through June
3, the number of Robinhood clients investing in JETS rose from 386
at the beginning of March to more than 30,000, a remarkable 77-fold
increase. This has made JETS one of the top 10 most popular ETFs on
the Robinhood platform as of June 3. Investors also came from
Charles Schwab and TD Ameritrade. As of May 29, JETS saw 63
straight days of positive fund flows.”
A recovery in commercial air travel may already be underway. The
number of passengers screened daily in the U.S. by the
Transportation Security Administration (TSA) has steadily been
gaining momentum since carriers were first grounded in an effort to
limit the spread of the pandemic. On June 1, as many as 353,261
people boarded commercial flights in the U.S., up more than 300
percent from a low of 87,534 people on April 14.
That’s still well below the 2.4 million passengers who flew on
average each day a year earlier, but judging from the recent record
inflows into JETS, investors appear to be betting that the
commercial airline industry will have a strong rebound following
the crisis.
Please consider carefully a fund’s investment objectives, risks,
charges and expenses. For this and other important information,
obtain a statutory and summary prospectus by visiting
www.usglobaletfs.com. Read it carefully before investing.
Past performance does not guarantee future results.
Investing involves risk, including the possible loss of
principal. Shares of any ETF are bought and sold at market price
(not NAV), may trade at a discount or premium to NAV and are not
individually redeemed from the fund. Brokerage commissions will
reduce returns. Because the fund concentrates its investments in
specific industries, the fund may be subject to greater risks and
fluctuations than a portfolio representing a broader range of
industries. The fund is non-diversified, meaning it may concentrate
more of its assets in a smaller number of issuers than a
diversified fund. The fund invests in foreign securities which
involve greater volatility and political, economic and currency
risks and differences in accounting methods. These risks are
greater for investments in emerging markets. The fund may invest in
the securities of smaller-capitalization companies, which may be
more volatile than funds that invest in larger, more established
companies. The performance of the fund may diverge from that of the
index. Because the fund may employ a representative sampling
strategy and may also invest in securities that are not included in
the index, the fund may experience tracking error to a greater
extent than a fund that seeks to replicate an index. The fund is
not actively managed and may be affected by a general decline in
market segments related to the index. Airline companies may
be adversely affected by a downturn in economic conditions that can
result in decreased demand for air travel and may also be
significantly affected by changes in fuel prices, labor relations
and insurance costs.
Smart beta refers to a type of exchange-traded
fund (ETF) that uses a rules-based system for selecting
investments to be included in the fund portfolio.
The outbreak of the COVID-19 pandemic and the resulting actions
to control or slow the spread has had a significant detrimental
effect on the global and domestic economies, financial markets and
industries, including airlines. U.S. Global Investors continues to
monitor the impact of COVID-19, but it is too early to determine
the full impact this virus may have on commercial aviation. Should
this emerging macro-economic risk continue for an extended period,
there could be an adverse material financial impact to the U.S.
Global Jets ETF.
Distributed by Quasar Distributors, LLC. U.S. Global Investors
is the investment adviser to JETS.
All opinions expressed and data provided are subject to change
without notice. Opinions are not guaranteed and should not be
considered investment advice.
Holly Schoenfeldt
U.S. Global Investors, Inc.
210.308.1268
hschoenfeldt@usfunds.com
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