6 Best Travel ETFs to Buy
Introduction: The travel industry has been experiencing significant growth over the past few years, and it is expected to continue flourishing in the future. As an investor, gaining exposure to this expanding sector by investing in travel ETFs can be a smart move. Here are the six best travel ETFs to consider buying.
1. U.S. Global Jets ETF (JETS)
This ETF focuses on the global airline industry, which forms a crucial part of the travel sector. JETS offers exposure to passenger airlines, aircraft manufacturers, and airport operators, providing investors with a diversified air travel portfolio.
2. Invesco Dynamic Leisure and Entertainment ETF (PEJ)
PEJ specifically targets the leisure and entertainment market within the travel industry. This ETF provides exposure to various segments such as airlines, hotels, restaurants, casinos, and resorts – all key players in the world of travel.
3. First Trust Nasdaq Transportation ETF (FTXR)
FTXR focuses on a broader aspect of transportation within the travel segment. It includes airlines, railroads, trucking companies, and marine transportation providers. By investing in this ETF, you will gain exposure to the entire logistics and transportation ecosystem that supports the travel industry.
4. ETRACS Monthly Reset 2xLeveraged ISE Exclusively Hotels Index ETN (HTUS)
The HTUS ETN concentrates on hotel operators and developers that cater to travelers. By
investing in this leveraged product, you can achieve higher returns during bullish trends while
recognizing the risks associated with this double-edged sword during bearish markets.
5. SPDR S&P Kensho Future Security ETF (FITE)
FITE provides a glimpse into the potential future of travel by exclusively featuring companies related to space tourism and exploration. Investing in this innovative niche area of space tourism is a bold bet for growth-oriented investors seeking high rewards.
6. Global X Millennial Consumer ETF (MILN)
This ETF targets the consumer habits of millennials, a crucial demographic for the continued growth of the travel industry. MILN includes companies that cater to millennial-friendly sectors such as online travel booking websites, theme parks, and adventure experiences.
Conclusion: Investing in travel ETFs can provide a balanced approach to gain exposure to this booming industry. These six ETFs represent various sub-sectors within travel and offer investors diverse opportunities to capitalize on the sector’s growth in the coming years. Always consult with a financial advisor before making any investment decisions and consider your risk appetite and investment horizon as you choose suitable ETFs for your portfolio.