For many investors, exchange-traded funds (ETFs) are an easy way to build a diversified portfolio. ETFs are collections of stocks from similar industries. According to U.S. News & World Report, technology-focused ETFs like the Vanguard Information Technology ETF are popular right now, but you can find great value in other sectors as well.
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For example, as Americans gear up for the spring and summer travel seasons, it's a good time to invest in travel stocks through these ETFs.
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US Global Jets ETF (JETS)
According to VettaFi's ETF database, US Global Jets is the only ETF that focuses solely on airlines. Top stocks in the portfolio include United Airlines Holdings, American Airlines Group, and Delta Air Lines. As major airlines continue their post-pandemic recovery, many airline stocks are currently undervalued, making the Jets a trading stock for investors. The ETF also has holdings in companies focused on transportation infrastructure, civil aviation services, and the internet.
The ETF sells for about $20 per share, down more than $10 from its five-year high, but has been slowly rising since the last quarter of 2023.
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Defiance Hotels, Airlines, and Cruises ETF (CRUZ)
If you want to invest in quality travel brands like Hilton, Marriott, InterContinental Hotels, and Royal Caribbean Cruises, as well as Delta Air Lines, Southwest Airlines, and more without managing a large stock collection, Defiance Hotels & I recommend the Airline/Cruise ETF (CRUZ). ) has been covered.
Like JETS, CRUZ is also trending higher and is currently trading at just over $22. The Defiance Hotel, Airline and Cruise ETF, launched in 2021, seeks to capitalize on the post-pandemic travel recovery with investments in household travel industry names.
Amplify Travel Tech ETF (AWAY)
Today, more people than ever are using mobile apps and digital platforms to plan and book their trips. You may be able to capture some of these gains by investing in the Amplify Travel Tech ETF. Key holdings include Airbnb, Expedia Group, Lyft, and MakeMyTrip.
According to AmplifyETFs.com, one study found that two-thirds of millennials use their smartphones to book travel, and nearly three-quarters use their smartphones for research. This number is expected to grow as artificial intelligence makes travel planning through apps more intuitive and creates a customized experience for every user.
At just over $20 per share, the Amplify Travel Tech ETF shows plenty of promise as an investment with a solid future.
last note
Travel stocks rose about 27% last year, according to Skift Research's Skift Travel 200, which tracks the performance of about 200 travel companies. This is higher than the S&P 500's average return of 10% in the first quarter of 2024.
Additionally, for those who travel frequently, investing in a travel ETF provides an opportunity to support companies you know and understand. This is one of Warren Buffett's main tenets of wise investing. Consumer travel is set to explode this spring, making it relatively easy for hotels, airlines, tourism experiences and travel booking engines to capitalize on profitability by 2024, according to a report from Nationwide Travel Insurance. It is said to become.
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This article originally appeared on GOBankingRates.com: 3 Best Travel ETFs to Invest in
