Investing in airlines has never been easy, as carriers over time have consistently operated on razor-thin margins and yielded relatively weak returns for investors . So much so has this been a challenge that The Economist once stated quite famously as follows: "Airlines are wonderful generators of profit-for everyone except themselves." As a result, major investors and investment management organizations have tended to target industry-adjacent firms in spaces like aircraft leasing, MRO, component supply, and manufacturing.
Nonetheless, there is one group of investors that has sought out a way to manage the risk that typically comes along with airline industry investing, by consolidating many positions across the industry into an Exchange Traded Fund (ETF), a kind of fund that is composed of stock holdings across multiple companies. Get all the latest aviation news from Simple Flying! The U.S.
Global Jets ETF (JETS) offers investors the ability to place their money into a fund traded on all major indices that is composed of extensive holdings across the industry . The fund holds stakes in many different US and international airlines and maintains net assets of over $1 billion. A junk credit status could be looming for the American airplane manufacturer.
A unique investment philosophy As air travel has changed drastically over the past decade, carriers have grown increasingly adept at shifting their business models to meet the needs of the market, making the industry incredibly.