The Defiance Hotel, Airline, and Cruise ETF
The Travel Reopening Trade
Covid-19 confined us to our homes for over a year. The time to travel, explore, experience and reconnect has arrived.
The desire to compensate for the restrictions of the past year with longer, further and more expensive holidays is just a part of the story. The pandemic brought the $8.9 trillion global travel and tourism industry to its knees. But with testing, safeguarding procedures and the vaccination rollout underway, it appears to be getting ready to stand again. Air travel could return to its pre-pandemic levels by the end of 2021, or early 2022,1 cruise ships are beginning to reopen their bookings, hotels have overhauled policies and practices to make guests feel safe.
CRUZ – Invest in Cruise Lines, Airlines and Hotels
Defiance’s Hotel, Airline, and Cruise ETF gives retail and institutional investors exposure to a cross section of companies that we believe have significant growth potential. It seeks to track the performance before fees and expenses of the BlueStar Global Hotels, Airlines, and Cruises Index, a rules-based weighted index of companies primarily engaged in the passenger airline, hotel and cruise industries.
1 “Air, Cruise Industries Face Rocky Road to Recovery Even with COVID-19 Vaccines,” Scott Reeves, December 9, 2020. https://www.newsweek.com/air-cruise-industries-face-rocky-road-recovery-even-covid-19-vaccines-1553519
Fund Data and Pricing
|Name||Symbol||Stock price||% Net assets||Shares Held||Market Value|
||Marriott Intl Inc New||MAR||$143.48||7.94%||1,356||194,559|
||Hilton Worldwide Hldgs Inc||HLT||$128.61||7.58%||1,444||185,713|
||Delta Air Lines Inc Del||DAL||$46.5||6.60%||3,476||161,634|
||Ryanair Holdings Plc||RYAAY||$113.68||5.90%||1,272||144,601|
||Southwest Airls Co||LUV||$57.57||5.81%||2,472||142,313|
||Huazhu Group Ltd||HTHT||$56.82||5.05%||2,180||123,868|
||Intercontinental Hotels Group Sponsored Ads||IHG||$72.95||4.30%||1,444||105,340|
||Royal Caribbean Group||RCL||$90.09||4.15%||1,128||101,622|
||United Airls Hldgs Inc||UAL||$56.52||3.83%||1,660||93,823|
Reasons to Invest
ClubMed have reported a 17% increase in family reunion bookings compared to the 2019 holiday season.2 For many there is a post-lockdown visceral need to reunite with distant family, friends and work colleagues.
Covid cost the travel and tourism sector an estimated $3.3 trillion.3 That’s a lot of suppressed demand that could be waiting to return when consumers feel safe.
Cooped up and denied agency, many people have missed their regular trips and are ready to return to a travel-rich lifestyle.
Governments, businesses and individuals alike all want to see the back of Covid-19 and a return to varied and accessible leisure and travel.