New Travel ETF ‘CRUZ’ Lands

June 04, 2021

A second travel ETF to roll out in less than month took flight Friday, with The Defiance Hotel, Airline, and Cruise ETF (CRUZ) launching in what backers hope will be friendly-flying skies.

One of the hardest-hit industries—if not the hardest hit—travel and leisure businesses are not so much worried about demand as they are about how much health precautions and the ongoing global fight against COVID-19 dampened or whet the world’s appetite for travel.

CRUZ tracks the BlueStar Global Hotels, Airlines, and Cruises Index, which includes 43 companies that derive at least 50% of their revenue from passenger airlines, hotels/resorts or cruises. The top two holdings are Marriott and Hilton, followed by Delta Airlines, Carnival Corp. and Southwest Airlines.

"The travel reopening trade is here. With a resurgence of travelers over Memorial Day weekend, Americans finally experienced life away from quarantine and back to the beach,” said Sylvia Jablonski, co-founder and chief investment officer of Defiance ETFs. “AAA is estimating that over 37 million Americans traveled over Memorial Day weekend. Demand for travel-related services is expected to increase over the course of summer, which should significantly benefit airline, cruise line and hotel stocks."

Last month, the SonicShares Airlines, Hotels, Cruise Lines ETF (TRYP), which launched on May 12, was having trouble getting off the ground, with a mere $1.5 million in assets.

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