The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  US Global Jets ETF to a Morningstar Medalist Rating of Negative.  The portfolio maintains a sizable cost advantage over competitors, priced within the second-lowest fee quintile among peers. The strategy changed its peer group last October, moving from the Miscellaneous Sector category to the Industrials Morningstar Category. 

 The team managing the passive strategy earns a Below Average People Pillar. The strategy gets an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in volatility exposure and momentum exposure compared with category peers. High volatility exposure is attributed to companies with a higher standard deviation of returns. And low momentum exposure is rooted in holding stocks that are not currently on a winning streak and instead holding those that managers believe are undervalued. The strategy's parent organization still has a way to go to reach the industry standard, evidenced by a low firmwide success ratio and a disappointing average Morningstar Rating. As a result, the firm obtains a Below Average Parent Pillar rating.

Analyst Rating

American Airlines

Delta Air Lines

Southwest Airlines

United Continental Hlds

SkyWest

Sun Country Airlines

Alaska Air Group

Expedia

Allegiant Travel Company

Associated Capital Group

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. US Global Jets ETF earns an Average Process Pillar rating. The largest contributor to the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Management team experience, which averages 32 years at this fund, also contributes to the process. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 0%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the performance, before fees and expenses, of the U.S. Global Jets Index.  The fund uses a "passive management" (or indexing) approach to track the performance, before fees and expenses, of the index. The index is composed of the exchange-listed common stock (or depositary receipts) of U.S. and international passenger airlines, aircraft manufacturers, airports, terminal services companies, and airline-related internet media and services companies, each as determined by independent industry listings (collectively, and “Airline Companies”). The fund is non-diversified. 

 The portfolio is overweight in consumer cyclical by 7.9 percentage points in terms of assets compared with the category average, and its communication services allocation is similar to the category. The sectors with low exposure compared to category peers are technology and industrials, underweight the average by 2.9 and 2.7 percentage points of assets, respectively. The portfolio is positioned across 58 holdings and is less top-heavy than peers. Specifically, 56.0% of the strategy's assets are concentrated within the top 10 fund holdings, as opposed to the category average's 70.5%. And finally, in terms of portfolio turnover, this portfolio's holdings turn over more often than comparable products in its peer group, possibly resulting in higher costs for investors and a drag on performance.

Average

Process

U.S. Global Investors’s team earns a Below Average People Pillar rating. The team benefits from the experience of the management team, which averages 32 years at this fund. However, the rating is limited by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.8 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis. The combined average five-year excess return of each manager also holds the rating back. It suggests that the funds they manage have underperformed their respective category's average return.

Below Average

People

U.S. Global Investors has a ways to go to become an industry-standard steward, resulting in a Below Average Parent Pillar rating. The firm has struggled to provide a durable product shelf, with only a 20% 10-year success ratio, meaning that only 20% have both survived and beaten their respective category median. A low success ratio not only indicates weak performance but also raises flags about a firm’s discipline around investment strategy and product development. The U.S. Global Investors roster of open-end and exchange-traded funds has had below-average risk-adjusted performance, as shown by its average overall Morningstar Rating of 2.3 stars. The firm charges fees on its open-end and exchange-traded funds that are on par with category peers. On average, fees on its funds are within the middle quintile, giving it neither an advantage nor disadvantage compared with the competition.

Parent

US Global Jets ETF

JETS invests in both US and non-US airline companies. This concentrated portfolio is weighted towards domestic passenger airlines.

Advisorshares Hotel ETF

Defiance Hotel Airline and Cruise ETF

Kelly Strategic Hotel & Lodging Sector ETF

ALPS Global Travel Beneficiaries ETF

A higher number of travelers are expected to travel this Labor Day holiday weekend.

5 ETFs to Tap the Labor Day Weekend Travel Rush

Teucrium Sugar Fund

First Trust NASDAQ Global Auto Index Fund

iShares U.S. Insurance ETF

CarMax

Lowe's

Invesco Dynamic Building & Construction ETF

United States Oil Fund LP

Universal Insurance Hlds

Materials Select Sector SPDR Fund

Consumer Discretionary Select Sector SPDR Fund

SPDR S&P Transportation ETF

As Hurricane Idalia makes landfall along the Florida coast, let's discuss the key areas that call for attention right now for profits or losses.

Hurricane Idalia Puts These ETF Areas in Focus

The Transportation Security Administration said late Tuesday it expects to screen more than 14 million people at airports during Labor Day holiday weekend, with Friday projected to be the busiest day, with nearly 3 million air travelers passing through airports' security checkpoints. Traveler volumes during this summer travel period are higher than summer 2019, “marking the busiest summer travel period on record,” the TSA said.

TSA: Labor Day holiday caps ‘busiest' summer on record

JetBlue Airways

It's been more than three weeks since the airlines earnings hit the market.

Airlines Report Upbeat Q2 Earnings: Buy the Dip in JETS ETF?

Direxion Daily Travel & Vacation Bull 2X Shares

Travel demand has hit pre-pandemic levels. International demand is outpacing domestic.

Will Rising Travel Demand Lift The Airline Sector?

VanEck Vectors Oil Refiners ETF

SPDR S&P Retail ETF

These sector ETFs are likely to be hurt if there is surge in oil prices.

Oil Price Rallies: Sector ETFs to Remain Under Pressure

Global X Autonomous & Electric Vehicles ETF

iShares India 50 ETF

VanEck Vectors Oil Services ETF

SPDR S&P Oil & Gas Exploration & Production ETF

U.S. crude has risen 20% in the past six weeks while Brent gained 17%. We have highlighted ETFs that are expected to benefit/lose from higher oil price.

ETFs to Benefit & Lose From Higher Oil Price

ETFMG Travel Tech ETF

Last week, I discussed the consumer discretionary sector making a big comeback in 2023 despite the overall market focus on innovation-oriented sectors like technology and communications services. Part of that has to do with softer second-half retail outlooks already priced into analyst and investor expectations.

Travel Demand Returns, What ETF to Land On?

Investors seeking momentum may have U.S. Global Jets ETF JETS on radar now. The fund recently hit a new 52-week high.

Airlines ETF (JETS) Hits New 52-Week High

Hawaiian Hlds

Spirit Airlines

Frontier Group Holdings

The US airline industry is expected to regain pre-pandemic profitability due to lower oil prices and higher utilization rates. Airlines trade at a historically cheap multiple of revenue to enterprise value. Growing demand and rationalized competition should lead to better returns on capital in the future.

U.S. Airlines Are Too Cheap, Why This Rebound Looks Real

Advisorshares Restaurant ETF

Americans are gearing up to spend more than ever on the Fourth of July holiday with travel in full swing.

5 ETFs to Make the Most of July Fourth Celebrations

iShares U.S. Home Construction ETF

VanEck Mortgage REIT Income ETF

Global X MSCI Nigeria ETF

iShares Mortgage Real Estate ETF

SPDR S&P Homebuilders ETF

June was an impressive month for Wall Street. The three major indexes posted decent gains.

Top-Performing ETF Areas of June

iShares Core U.S. Aggregate Bond ETF

ARK Fintech Innovation ETF

ARK Innovation ETF

ARK Web x.0 ETF

ProShares Bitcoin Strategy ETF

Bitwise Crypto Innovators ETF

Global X Blockchain & Bitcoin Strategy ETF

2x Bitcoin Strategy ETF

Global X Blockchain ETF

Valkyrie Bitcoin Strategy ETF

First Trust SkyBridge Crypto Industry and Digital Economy ETF

VanEck Vectors Digital Transformation ETF

Invesco DB Agriculture Fund

Xtrackers MSCI EAFE Hedged Equity ETF

Hashdex Bitcoin Futures ETF

First Trust NYSE Arca Biotechnology Index Fund

Fidelity Covington Trust-Fidelity Crypto Industry And Digital Payments Etf

First Trust Global Tactical Commodity Strategy Fund

Grayscale Future of Finance ETF

iShares Blockchain And Tech ETF

iShares Transportation Average ETF

JPMorgan Equity Premium Income ETF

KraneShares Global Carbon ETF

Simplify Bitcoin Strategy PLUS Income ETF

Hello! This week's ETF Wrap looks at top performers in the first half of 2023, as well as flows, as stocks rally and crypto-related funds jump so far this year.

Here are the top-performing ETFs in first half of 2023 as crypto-related funds soar

The U.S. Global Jets ETF, which invests in major US and international passenger airline companies, saw unit prices rise by 4.4% on June 27th, bringing its return for the past month to 10.8% and year to date to nearly 18.2%. This growth is largely attributed to a 6.8% increase in shares of Delta Air Lines, the ETF's largest holding, following optimistic projections revealed at the company's 2023 Investor Day. Delta Air Lines' management expects air travel spending in the US to return to pre-pandemic levels this year, reaching 1.3% of the country's GDP. They also highlighted the growth of household wealth among high-income travelers, who account for roughly 75% of all air travel spending, and supply constraints in the industry which could allow companies to charge more for their services. The airline industry is also expected to benefit from lower fuel costs, with Bank of America raising its forecast for earnings per share across the sector for 2023 due to the expectation that lower fuel costs will boost profits. As a result of the news and my findings, I am assigning a soft 'buy' rating to JETS.

U.S. Global Jets ETF Soars On Strong News From Delta Air Lines

Last year, American wireless carriers paused plans to launch higher-power 5G networks around U.S. airports amid concerns about interference with airplanes' altimeters.

Pete Buttigieg warns of potential for flight delays as July 1 5G deadline looms

As the world adjusts to the new normal, "revenge travel" is set to revolutionize the tourism industry.

Play "Revenge Travel" with These ETFs

IATA has significantly increased its forecast profits for 2023. U.S. Global Jets ETF is not the desired way to capitalize on this as growth is driven by European airlines, which have low exposure in the ETF. North America remains a very strong region in the forecast.

U.S. Global Jets ETF: Do Not Buy On Bullish IATA Forecast

American Airlines raised its Q2 forecast against low fuel costs and strong travel demands. Take a look into how JETS ETF is set to gain.

JETS ETF to Gain on Lower Energy Costs, Consumer Resilience

So-called "revenge travel" spending remains strong, with TSA checkpoint data returning to pre-pandemic levels. Despite a low P/E, I have a hold rating on the U.S. Global Jets ETF. With bearish seasonal trends, the JETS chart has work to do to show definitive reversal signs.

JETS ETF Stuck On The Tarmac, Reiterate Hold Amid Mixed Macro Factors

VanEck Vectors Steel ETF

Energy Select Sector SPDR Fund

Oil prices staged massive decline this week due to demand concerns owing to global growth slowdown.

Oil Under Pressure: Sector ETFs to Benefit/Lose

The U.S. airline industry delivered a mixed performance in the first quarter of 2023. With recovering demand, capacity is expected to go up ahead.

Forget Mixed Airlines Earnings: Play JETS ETF on Upbeat Outlook

Major U.S. airlines are scheduled to report first-quarter earnings in the coming days, with investors hoping for good news about peak summer travel amid a recent slowdown in bookings.

As bookings slow, airline earnings will be all about hopes for peak summer travel

Oil prices increased considerably lately on surprise OPEC+ output cut.

Sector ETFs to Benefit/Lose on Surprise OPEC+ Output Cut

Despite volatility and chaos in markets in March, travel ETFs have largely held onto their year-to-date gains. Travel ETFs have been supported by strong demand for leisure travel couples with higher prices.

Travel ETFs Hold On To Strong YTD Returns

iShares iBoxx High Yield Corporate Bond ETF

Invesco QQQ

SPDR S&P 500 ETF Trust

Hello! This week's ETF Wrap shines the light on gold ETFs, which are outperforming the S&P 500 so far this year. Will gold rally when the Fed eventually pauses its rate hikes?

News for US Global Jets ETF ETF (JETS)