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.
[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
Holly Schoenfeldt U.S. Global Investors, Inc. 210.308.1268 hschoenfeldt@usfunds.com
