U.S. Global Investors, Inc. (Nasdaq: GROW) (“the Company”), a
boutique registered investment advisory firm that focuses on niche
markets around the world, is pleased to announce that its airlines
ETF, the U.S. Global Jets ETF (JETS), reached a new milestone by
surpassing $4 billion in assets under management (AUM). As of
market close on March 15, 2021, JETS AUM stood at approximately
$4.24 billion, a more than 2,600% increase from a year earlier.
In addition, JETS closed at a 52-week high of $28.59 on March
15, 2021, an approximately 140% increase from its pandemic low set
on May 15, 2020.
“We couldn’t be more thrilled with how JETS has done over the
past 12 months, and we want to thank investors big and small for
making it a $4 billion ETF,” says Frank Holmes, CEO and chief
investment officer of U.S. Global Investors. “Our smart-beta 2.0
ETF is still the only pure-play global airlines investment vehicle
currently available, with a distinctive portfolio structure that
uses five key factors to pick stocks.”
Launched in 2015, JETS began attracting significant assets when
airline stocks plunged in February and March 2020 due to the
COVID-19 pandemic. In the first 50 trading days of 2020, before the
crisis, average daily trading volume was about 315,000 shares. A
year later, this figure jumped to approximately 6.7 million shares
traded per day on average, a 21x increase. Participants have been
as varied as retail investors to hedge funds to insurance
companies.
Now, as we head into the busy spring and summer travel seasons,
we’re starting to see a substantial recovery in commercial flight
demand. Close to 1.4 million passengers were screened at U.S.
airports on Friday, March 12, 2021, representing the greatest
volume for a single day since March of last year. In the first half
of March 2021, nearly 16.5 million total passengers boarded
commercial jets in the U.S., the most for any month since March
2020.
“We make sure to track the U.S. Transportation Security
Administration’s (TSA) daily report on passenger volume because
we’ve found it to be a reliable proxy for investor appetite,”
continues Mr. Holmes. “Before the pandemic, approximately 2.2
million people were cleared by the TSA per day, with international
arrivals and departures making up the bulk of the volume. A year
later, domestic leisure travel is beginning to rebound while
international flights remain muted due to lockdowns in Canada, the
European Union (EU) and elsewhere.”
The rate at which vaccines are being administered is
accelerating in the U.S., which we believe is highly constructive
for travel and tourism in general and airlines specifically. The
Biden administration recently directed all 50 states to make every
adult aged 18 and over eligible to receive the COVID-19 vaccine by
May 1 of this year. Anticipating a summer surge, a number of
domestic low-cost carriers, including Southwest and Allegiant, have
announced plans to expand their networks.
United Airlines became the first U.S. carrier to say it expected
to be cash flow positive in March 2021 for the first time since the
pandemic began. Other carriers have likewise signaled their
optimism going forward as vaccinations continue to ramp up.
To learn more about the U.S. Global Jets ETF (JETS),
click here.
####
About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 50 years
when it began as an investment club. Today, U.S. Global Investors,
Inc. (www.usfunds.com) is a registered investment adviser that
focuses on niche markets around the world. Headquartered in San
Antonio, Texas, the Company provides money management and other
services to U.S. Global Investors Funds and U.S. Global ETFs.
Forward-Looking Statements and Disclosure
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.
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. Positive cash
flow indicates that a company is adding to
its cash reserves, allowing it to reinvest in the
company, pay out money to shareholders, or settle future debt
payments.
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.
- us-global-jets-surpasses-4-billion
- commercial-flight-demand-in-the-us-high-031162021
Holly Schoenfeldt
U.S. Global Investors, Inc.
210.308.1268
hschoenfeldt@usfunds.com
US Global Investors (NASDAQ:GROW)
Historical Stock Chart
From Feb 2024 to Mar 2024
US Global Investors (NASDAQ:GROW)
Historical Stock Chart
From Mar 2023 to Mar 2024