U.S. Global Investors Launches Its Airlines JETS ETF on Colombia Securities Exchange, Offering Investors Exposure to $2 Trillion Tourism Industry

Rhea-AI Summary

U.S. Global Investors (NASDAQ: GROW) has announced the listing of its U.S. Global Jets ETF (NYSE: JETS) on the Colombian Securities Exchange. This expansion into Colombia follows previous listings in New York (2015), Peru (2020), and Mexico (2021). The move aims to capitalize on Colombia's strong post-pandemic tourism growth and the booming global travel sector.

Key points:

• JETS offers exposure to the $2 trillion tourism industry
• Colombia saw a 4% increase in international tourist arrivals between 2019-2022
• The global travel sector contributed 9% to the global economy in 2023
• JETS uses a quantitative approach for stock selection, including Latin American companies

Positive

• Expansion of JETS ETF to Colombian Securities Exchange, potentially increasing investor base
• Exposure to $2 trillion tourism industry and record 5 billion air travelers expected in 2024
• Colombia's strong 4% growth in international tourism arrivals between 2019-2022
• Global travel sector's 23.2% contribution increase to the global economy in 2023
• 9% increase in global travel and tourism industry employment in 2023

Negative

• None.

Financial Analyst

The launch of the JETS ETF on Colombia's stock exchange is a strategic move by U.S. Global Investors to tap into Latin America's growing tourism market. This expansion could potentially increase the fund's assets under management and diversify its investor base. The ETF's exposure to the $2 trillion tourism industry presents a significant growth opportunity.

However, investors should consider the volatility in the airline industry and the potential impact of economic fluctuations on tourism. The ETF's performance will likely be tied to global travel trends and oil prices. The currency hedge aspect for Colombian investors is an attractive feature, potentially mitigating risks associated with local currency depreciation against the USD.

Market Research Analyst

Colombia's 4% increase in international tourist arrivals between 2019 and 2022 is remarkable, especially considering the global pandemic's impact. This growth, coupled with the government's ambitious target of 7.5 million non-resident visitors by 2026, signals a robust outlook for the country's tourism sector.

The global travel sector's 9% contribution to the world economy and its 23.2% year-over-year growth underscore the industry's resilience and potential. With 27 million people employed in travel and tourism globally, the sector's economic impact is substantial. These trends suggest a favorable environment for the JETS ETF, potentially attracting investors looking to capitalize on the travel industry's recovery and growth.

Investment Strategist

The JETS ETF's expansion into Colombia offers investors a unique opportunity to gain exposure to the global airline industry through a local exchange. This move aligns with the growing trend of cross-border ETF listings, enhancing accessibility for international investors.

The ETF's smart beta 2.0 approach and quarterly rebalancing provide a dynamic investment strategy, potentially capturing value across various segments of the airline industry. Including Latin American companies in the portfolio offers regional diversification. However, investors should be aware of the concentration risk in the four largest U.S. airlines. Overall, this listing could attract both institutional and retail investors in Colombia looking for thematic exposure to the global travel sector.

San Antonio, TX, Aug. 29, 2024 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with longstanding experience in global markets and specialized sectors, today is pleased to announce that its airlines ETF, the U.S. Global Jets ETF (NYSE: JETS), is now listed on Bolsa de Valores de Colombia (BVC), the Colombian Securities Exchange.

The new listing will further expand JETS’ Latin America footprint and allow investors in Colombia to access the ETF. JETS first listed in New York in 2015. In 2020, it was approved to trade in Lima, Peru, and in 2021, JETS landed in Mexico.

“We couldn’t be more excited to give Colombian investors the opportunity to participate in the global airlines industry, which is expected to carry a record 5 billion people this year,[1]” says Frank Holmes, CEO and chief investment officer of U.S. Global Investors. “Investors who own JETS in Latin American countries where it trades—Mexico, Peru and now Colombia—have the potential to benefit from the global tourism boom, projected to generate $2 trillion in revenue in 2024.[2] They may also gain a currency hedge if their local currencies lose value against the U.S. dollar.”

Colombia Leads in Post-Pandemic International Tourism, Aims for Continued Growth

According to an Organization for Economic Cooperation and Development (OECD) report, Colombia topped the list of countries with the most positive percent change in the number of international tourists. Between 2019 and 2022, when most countries were still grappling with the pandemic, Colombia saw a 4% increase in tourist arrivals from overseas destinations.[3]

President Gustavo Petro’s administration aims to make tourism a primary sector of the economy, with the goal of attracting 7.5 million non-resident visitors by 2026.[4]

Exposure to Booming Global Travel Sector in a Single ETF

According to the World Travel and Tourism Council, the travel sector contributed 9% to the global economy last year. That’s an increase of 23.2% from 2022.[5] The JETS ETF offers investors exposure to a large portion of this industry, with holdings not only in major carriers but also international airports, aircraft manufacturers and booking companies.

In 2023, the global travel and tourism industry employed 27 million people, an increase of over 9% compared to a year earlier.5

Quant Approach to Stock Selection

“Our quant, smart beta 2.0 approach to selecting stocks has resulted in a number of Latin American companies being part of the ETF, including Brazil’s Embraer, Panama’s Copa Holdings and Mexico’s Grupo Aeroportuario del Sureste, a publicly traded airport operator,” Mr. Holmes continues. “Once a quarter, JETS is rebalanced and reconstituted, with a focus on America’s four largest airlines: America, Delta, United and Southwest.”

Representatives from the Company will ring the bell at the BVC to celebrate the JETS listing while attending the Congreso Asobolsa, happening August 28-30 in Cartagena. This event brings together major players of the regional capital market, including corporate leaders, decision markers, investors, political leaders and more. 

To learn more about the U.S. Global Jets ETF (JETS), click here.

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About U.S. Global Investors, Inc.

The story of U.S. Global Investors goes back more than 50 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides money management and other services to U.S. Global Investors Funds and U.S. Global ETFs.

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a statutory and summary prospectus by visiting  usglobaletfs.com. Read it carefully before investing.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the fund. Brokerage commissions will reduce returns. Because the fund concentrates its investments in specific industries, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The fund is non-diversified, meaning it may concentrate more of its assets in a smaller number of issuers than a diversified fund. The fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The fund may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the fund may diverge from that of the index. Because the fund may employ a representative sampling strategy and may also invest in securities that are not included in the index, the fund may experience tracking error to a greater extent than a fund that seeks to replicate an index. The fund is not actively managed and may be affected by a general decline in market segments related to the index. Airline companies may be adversely affected by a downturn in economic conditions that can result in decreased demand for air travel and may also be significantly affected by changes in fuel prices, labor relations and insurance costs.

Smart beta refers to a type of exchange-traded fund (ETF) that uses a rules-based system for selecting investments to be included in the fund portfolio. Positive cash flow indicates that a company is adding to its cash reserves, allowing it to reinvest in the company, pay out money to shareholders, or settle future debt payments. The outbreak of the COVID-19 pandemic and the resulting actions to control or slow the spread has had a significant detrimental effect on the global and domestic economies, financial markets and industries, including airlines. U.S. Global Investors continues to monitor the impact of COVID-19, but it is too early to determine the full impact this virus may have on commercial aviation. Should this emerging macro-economic risk continue for an extended period, there could be an adverse material financial impact to the U.S. Global Jets ETF. All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice.

Distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment adviser to JETS.

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[1] Airline profitability outlook improves for 2024. IATA. https://www.iata.org/en/pressroom/2024-releases/2024-06-03-01

[2] Global tourism - market size, industry analysis, trends and forecasts (2024-2029). IBISWorld Industry Reports. https://www.ibisworld.com/global/market-research-reports/global-tourism-industry 

[3] OECD tourism trends and policies 2024. OECD. (2024, July 8). https://www.oecd.org/en/publications/oecd-tourism-trends-and-policies-2024_80885d8b-en.html  

[4] Ospino, L. (2023, September 11). Colombia launches massive campaign to attract tourism; diversify economy. Colombia One: News from Colombia and the World. https://colombiaone.com/2023/09/10/colombia-land-of-beauty-tourism-campaign  

[5] Travel & Tourism Economic Impact. World Travel & Tourism Council. https://wttc.org/research/economic-impact

FAQ

What is the new listing announcement for U.S. Global Investors' JETS ETF (GROW)?

U.S. Global Investors (NASDAQ: GROW) has announced the listing of its U.S. Global Jets ETF (NYSE: JETS) on the Colombian Securities Exchange, expanding its presence in Latin America.

How does the JETS ETF (GROW) provide exposure to the tourism industry?

The JETS ETF offers investors exposure to the global airlines industry and tourism sector, which is projected to generate $2 trillion in revenue in 2024 and carry a record 5 billion people.

What was Colombia's international tourism performance between 2019 and 2022?

According to an OECD report, Colombia saw a 4% increase in international tourist arrivals between 2019 and 2022, leading the list of countries with the most positive percent change during this period.

How does U.S. Global Investors (GROW) select stocks for the JETS ETF?

U.S. Global Investors uses a quantitative, smart beta 2.0 approach for stock selection in the JETS ETF, focusing on major carriers, international airports, aircraft manufacturers, and booking companies, with quarterly rebalancing.