HANetf : Airlines, Hotels and Cruise Lines UCITS ETF has seen its assets under management (AUM) grow to almost $30million. The U.S. Global Jets UCITS ETF has also seen its assets grow to over $10million.
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Hector McNeil, co-CEO of HANetf
- TRYP’s AUM represents a growth 174% since the start of the year. Meanwhile, the AUM of JETS has increased by 154%.
- Investors are positioning for a recovery in air travel and tourism, which is expected to pick back up as government’s relax travel rules.
The Airlines, Hotels and Cruise Lines UCITS ETF (TRYP) had $28.5 million in assets under management, as of 11th February 2022. Launched in June 2021, the ETF has seen particularly rapid AUM growth since the start of 2022. At the start of year, the ETF has seen its AUM grow by 174%, going from just over $10 million in AUM to today’s almost $30 million.
TRYP seeks to offer exposure to the travel industry as it tracks global airline companies, hotel businesses and cruise line operators.
The TRYP travel industry ETF tracks the Solactive Airlines, Hotels, Cruise Lines Index which is focused on companies that derive significant revenue from the travel and tourism sector including companies engaged in the airlines, hotels, and cruise lines business.
Meanwhile, the U.S. Global Jets UCITS ETF has seen its AUM grow from $4.1 million at the start of the year to $10.5 million today. That represents a year-to-date growth of 154%.1
JETS is Europe’s first global airline industry ETF. The JETS Airline ETF tracks the U.S. Global Jets Index and tracks companies within the commercial airline, aircraft manufacturing, and airport & terminal services industries. The index uses a combination of fundamental factors to determine the most efficient airline companies and provides diversification through exposure to companies around the world listed on well-developed stock exchanges.
The global travel and tourism industry is a barometer for the global economy and is represented by three important sectors: airlines, hotels and cruise lines. Those sectors have faced a tough time since the start of the global Covid-19 pandemic in 2020. However, an increasing number of countries are reducing travel restrictions. According to the U.S. Travel Association and Tourism Economics, U.S. leisure and business travel are expected to rebound dramatically from current levels. U.S. travel-related spending was estimated to be about $877 billion in 2021, but forecasted to increase to $1.26 trillion by 2025. Other growth drivers also exist such as the growth in disposable income and a growing middle class in emerging markets.
Commenting on the news, Hector McNeil, co-CEO of HANetf said:
“Despite global stock markets struggling, investors have piled into ETFs offering exposure to the travel and tourism industry. For many investors this likely a cyclical recovery. As the world re-opens to tourism and travel, exposure to airlines and tourist operators makes sense. As the global economy grows, so too should travel and tourism. The reversal of the growth of travel and tourism since the pandemic, many hope, will prove short-lived.
These two ETFs also serve as a useful reminder of the potential diversity of thematic ETFs. The majority of thematic ETFs focus on emerging technology themes. But it should also be kept in mind that there are themes and opportunities still found within the so-called “old economy”. TRYP and JETS are one of many unique ETPs we offer, including the most expansive range of thematic ETFs and Europe’s most Liquid crypto ETPs.”
Source: ETFWorld.co.uk
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