U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a
registered investment advisory firm with longstanding experience in
global markets and specialized sectors, today is pleased to
announce that it repurchased 23,622 of its own shares in June 2023,
at a net cost of approximately $67,000. This represents an increase
of approximately 78% from the number of shares purchased the same
month in 2022.
The Company has significantly increased the amount of stock it
repurchases. The Board of Directors (the “Board”) modified
the Company’s buyback program in December 2022, making it possible
for the Company to buy back shares of GROW stock when the price is
flat or down from the previous trading day. In the first half of
2023, the Company repurchased a total of 284,885 GROW shares,
roughly 337% more compared to the number of shares it bought back
in the sixth-month period ended June 30, 2022.
“We believe the Company’s stock looks attractive right now with
a price-to-earnings (P/E) ratio of 3.14 as of July 5, compared to a
P/E of 12.45 for our peers in the Dow Jones U.S. Small Cap Asset
Managers Index,” says Frank Holmes, the Company’s CEO and Chief
Investment Officer. “By buying back our own stock, we seek to
return value back to the shareholders, and I’m grateful to the
Board for its continued confidence in our growth and business
strategy.”
Continuation of Monthly Dividends
The Board approved payment of the $0.0075 per share per month
dividend beginning in July 2023 and continuing through September
2023. The record dates are July 10, August 14 and September 11, and
the payment dates will be July 24, August 28 and September 25.
At the June 30, 2023, closing price of $3.06, the $0.0075
monthly dividend equals a 2.94% yield on an annualized basis.
The continuation of future cash dividends will be determined by
the Board, at its sole discretion, after review of the Company’s
financial performance and other factors, and is dependent on
earnings, operations, capital requirements, general financial
condition of the Company and general business conditions.
JETS Beat the Market in the First Half of 2023
On a final note, the Company is pleased with the overall health
of the commercial airline industry in the first half of 2023 and
the performance of its U.S. Global Jets ETF (NYSE: JETS). Passenger
volumes in the U.S. have fully returned to and, in fact, exceeded
pre-pandemic levels, with the number of people boarding planes
totaling just under 77 million in June, compared to 76.3 million
passengers in June 2019, according to Transportation Security
Administration (TSA) data. This comes despite there being flight
disruptions at the end of June due to inclement weather on the East
Coast.
“We believe the airline industry is a leading economic indicator
since consumers have historically booked their flights days and
weeks ahead of their trips in a majority of cases,” comments Mr.
Holmes. “JETS has responded well to the positive booking activity,
increasing more than 25% in the first half of 2023, outperforming
the S&P 500, which gained 16.8% on a tech-fueled rally. We
chalk this up to JETS’ quant-based, smart-beta construction; every
quarter, the ETF rebalances and reconstitutes. JETS currently
trades not just in New York but also in Europe, Mexico and Peru.”
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 investment advisory services
to U.S. Global Investors Funds and U.S. Global ETFs.
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# # #
Please carefully consider a fund’s investment objectives, risks,
charges, and expenses. For this and other important information,
obtain a statutory and summary prospectus for JETS
by clicking here. Read it carefully before investing.
Total Annualized Returns as of 6/30/2023:
Fund |
One-Year |
Five-Year |
Ten-Year |
Since Inception(4/28/2015) |
Gross Expense Ratio |
U.S. Global Jets ETF NAV |
30.09% |
-5.34% |
n/a |
-1.29 |
0.60% |
U.S. Global Jets ETF Share Price |
29.82% |
-5.33% |
n/a |
-1.29% |
0.60% |
S&P 500 |
18.48% |
7.58% |
12.83% |
n/a |
n/a |
The performance data quoted represents past performance. Past
performance does not guarantee future results. The investment
return and principal value of an investment will fluctuate so that
an investor's shares, when sold or redeemed, may be worth more or
less than their original cost and current performance may be lower
or higher than the performance quoted. For performance data current
to the most recent month-end please
visit www.usglobaletfs.com. Short-term
performance, in particular, is not a good indication of the fund’s
future performance, and an investment should not be made based
solely on returns.
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 funds. Brokerage commissions will
reduce returns. Because the funds concentrate their investments in
specific industries, the funds may be subject to greater risks and
fluctuations than a portfolio representing a broader range of
industries. The funds are non-diversified, meaning they may
concentrate more of their assets in a smaller number of issuers
than diversified funds. The funds invest 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 funds 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 funds may diverge from that of the index.
Because the funds may employ a representative sampling strategy and
may also invest in securities that are not included in the index,
the funds may experience tracking error to a greater extent than
funds that seek to replicate an index. The funds are 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.
Fund holdings and allocations are subject to change at any time.
Click to view fund holdings for JETS.
Distributed by Quasar Distributors, LLC. U.S. Global Investors
is the investment adviser to JETS.
A P/E (price-to-earnings) ratio is a metric that compares a
company's share price to its annual net profits. The Dow Jones
U.S. Small Cap Asset Managers Index is a market cap-weighted index
of publicly traded small-cap asset management firms in the U.S. The
S&P 500 Stock Index is a widely recognized
capitalization-weighted index of 500 common stock prices in U.S.
companies.
Smart beta investing combines the benefits of passive
investing and the advantages of active
investing strategies.
- Commercial Air Passenger Volumes Have Returned to Pre-Pandemic
Levels
Holly Schoenfeldt
U.S. Global Investors, Inc.
210.308.1268
hschoenfeldt@usfunds.com
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