U.S. Global Investors Announces Launch of Europe’s First Airlines Industry ETF with Strategic Partner HANetf
June 17 2021 - 8:00AM
U.S. Global Investors, Inc. (Nasdaq: GROW) (“the Company”), a
registered investment advisory firm that focuses on specialized
markets around the world, is thrilled to announce its partnership
with HANetf to launch Europe’s first and only global airlines
industry ETF. The U.S. Global Jets UCITS ETF (JETS) launched today
on the London Stock Exchange (LSE).
This move marks the second time this year that the Company has
expanded its product line to international markets, the first case
being in April when it launched its airlines ETF on the Mexican
Stock Exchange (BMV).
Based in London, HANetf is Europe’s first independent
full-service provider of Undertakings for Collective Investment in
Transferable Securities (UCITS) ETFs, with over $2 billion in
assets under management (AUM). Exchange-traded funds that qualify
as UCITS can be registered in Europe and offered to investors
throughout the European Union (EU) using standardized regulatory
requirements. Once approved, they become exempt from regulation in
individual countries.
The Company manages the U.S. Global Jets ETF (JETS), a
U.S.-based exchange-traded fund that invests in not just carriers
around the world but also airport services companies and aircraft
manufacturers. As of June 1, AUM stood at $4.0 billion. Inflows
into JETS began to soar in the first quarter of 2020 as investors
bet on the eventual development and distribution of a vaccine
against COVID-19.
A similar investment case prompted the idea of a European-based
airlines ETF, according to Frank Holmes, the Company’s CEO and
chief investment officer.
“Here in the U.S., leisure travel is steadily recovering as over
half of American adults are now either fully or partially
vaccinated against COVID-19. That’s compared to only around 40% of
people in the EU who have received at least one dose,” Mr. Holmes
says. “Therefore, we still believe there is great upside potential
in terms of European commercial flight demand, especially now that
EU officials have agreed that member states should start allowing
fully vaccinated foreigners to visit.
“Like U.S. investors, Europeans are signaling that they want
investment vehicles that seek to capitalize on the reopening of the
global economy,” Mr. Holmes continues. “The JPMorgan Global
Composite PMI, a leading indicator of economic business conditions,
hit an incredible 15-year high in May, which points to strong
growth going forward. I believe our airlines ETF, in collaboration
with HANetf, will meet EU and United Kingdom investors’ demand for
such a product that seeks to track the global economic
reopening.”
The U.S. Global Jets UCITS ETF will seek to acquire a number of
European airlines-related stocks, including Ireland-based Ryanair,
Hungary-based Wizz Air and Zurich Airport in Switzerland.
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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 specialized 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.
This news release may include certain “forward-looking
statements” including statements relating to revenues, expenses,
and expectations regarding market conditions. These statements
involve certain risks and uncertainties. There can be no assurance
that such statements will prove accurate and actual results and
future events could differ materially from those anticipated in
such statements.
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.
U.S. Global’s U.S.-based ETFs are distributed by Quasar
Distributors, LLC. U.S. Global Investors, Inc. is the investment
adviser to the JETS and GOAU ETF. The U.S. Global Jets UCITS ETF is
not available to U.S. investors.
All opinions expressed and data provided are subject to change
without notice. Opinions are not guaranteed and should not be
considered investment advice.
No assurance can be given that investments will be made into the
companies discussed or that similar investments will be made.
Holly Schoenfeldt
U.S. Global Investors, Inc.
210.308.1268
hschoenfeldt@usfunds.com
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