The U.S. Global Jets ETF (NYSE:JETS) is up just 3.5 percent year-to-date as the lone exchange-traded fund dedicated to airline stocks has been pounded in recent weeks. JETS is off about 13 percent from its July highs even though oil prices have continued slumping over that period as well.
However, some relief for JETS could arrive in September as the ninth month of the year is historically kind to some of the ETF's big-name holdings.
The underlying index for JETS, the U.S. Global Jets Index, uses a smart beta strategy to track the global airline industry. The index uses fundamental screens to determine the most efficient airline companies according to US Global.
Looking To September
Two of the biggest holdings in JETS, Delta Air Lines, Inc. (NYSE:DAL) and United Continental Holdings Inc (NYSE:UAL), historically perform well in September.
Over the past 10 Septembers, Delta has finished higher 70 percent of the time with an average gain of almost 6 percent, according to Schaeffer's Investment Research. United Continental has finished to the upside nearly two-thirds of the time over the past 11 Septembers with an average gain of 5.1 percent, according to Schaeffer's.
That is potentially good news for JETS because Delta and United Continental are the ETF's second- and fourth-largest holdings, respectively, combining for over 22 percent of the fund's roster. American Airlines Group Inc (NASDAQ:AAL) and Southwest Airlines Co (NYSE:LUV) are the two other top holdings in JETS, combining for over 23 percent of the ETF's weight. The weighted average market value of JETS' components is $24.15 billion.
Still Attractively Valued
JETS, home to nearly $117 million in assets under management, sports some attractive valuations. The ETF's price-to-earnings ratio is just 10.8, according to issuer data, well below that of the S&P 500. The price-to-book value on JETS is just 2.89.
Year to date, investors have added $53 million to JETS.
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