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Market Extra: Jets ETF soars past S&P 500 gains Tuesday as airlines trade sharply higher


The U.S. Global Jets ETF is climbing more than the broader stock market Tuesday, lifted by big gains from beaten down Delta Air Lines Inc., American Airlines Group Inc. and United Airlines Holdings.

The exchange-traded fund

was up more than 6% Tuesday afternoon, surpassing the S&P 500’s

gain of 2.8%, according to FactSet data, at last check. U.S. Global Jets ETF’s top three holdings on Oct. 3 were Delta, American, and United, with each airline representing slightly more than 10% of its net assets, according to data on the fund’s webpage.

Those same three airlines have been battered in the bear market this year, taking a harder hit than the S&P 500 as of the third quarter’s end. For example, shares of American were down about 33% this year on Sept. 30, the day the S&P 500 closed at its 2022 low. That had steepened the U.S. stock-market benchmark’s losses this year to almost 25% through September.

The U.S. Global Jets ETF has climbed sharply Tuesday after some domestic fares recently rose. Results were mixed in “week-over-week changes for average, walk-up, domestic airfares for Friday, September 30,” with Hawaiian Holdings Inc. standing out with a 155.8% surge from the prior week to $629 one-way, according to a Deutsche Bank research note dated Oct. 3.

Southwest Airlines Co.’s domestic fares were up 8.7% over the same period to $317 one-way, while Alaska Air Group Inc. rose 6% to $416 and Delta fares saw a more modest rise of 4% to $487 one-way, the Deutsche note shows. “Both American and United were flat to last week.”

Shares of U.S. airlines Delta

and American

were each soaring more than 8% Tuesday afternoon, while United

was up 7.3%, FactSet data show, at last check. Hawaiian

and Alaska
which were also among U.S. Global Jets ETF’s top 10 holdings on Oct. 3, were up sharply Tuesday too.

Meanwhile, consumer discretionary was among the S&P 500’s best-performing sectors Tuesday afternoon with gains of more than 3%, according to FactSet data, at last check. But consumer discretionary shares also have been pounded so far this year, with losses of almost 28% based on Tuesday afternoon trading.

The stock market is bouncing this week from a particularly rough September. The U.S. Global Jets ETF has tumbled around 23% so far this year, compared with a drop of 20.6% for the S&P 500 based on Tuesday afternoon trading.

Currencies: The stock market is surging as the U.S. dollar retreats. It’s all about bonds.

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