Explainer: JETS

Each month, we look at an ETF selected by ETF.com based on its performance and importance to investors. This month, we consider the performance of the $3.1 billion US Global Jets ETF (JETS), which covers the airline industry. Although it has performed poorly in the last 12 months, it has seen strong inflows as investors bet on a post-pandemic turnaround. All the companies mentioned below are holdings in JETS, unless otherwise noted (*).

FEB 25 American Airlines stock falls to its lowest levels since 2013, with investors viewing it as more vulnerable to the effects of the pandemic than its peers.

MAR 14 President Trump imposes an initial 30-day travel ban on foreigners from most European nations due to the coronavirus pandemic.

JUN 8 United Airlines stock rises more than other airline stocks as hopes grow of a revival in air travel as the pandemic continues to run its course.

SEP 16 In the largest debt deal in aviation history, Delta Air Lines announces it’s looking to borrow $9 billion to make it through the pandemic and protect employee jobs.

OCT 1 With the expiration of the CARES payroll support program, airlines begin furloughing 30,000 workers and cutting flights.

DEC 3 Southwest Airlines warns 6,800 employees of potential furloughs in the spring, which would be a first in the generally profitable airline’s 50-year history.

Source: Bloomberg; data for 1/31/2020-1/31/2021