The airline ETF known as JETS has holdings of many of the airlines. Major airlines being the major holdings, LUV, DAL, AAL, UAL and so on.
What would happen to the ETF if airlines consolidate? Say 2 existing holding companies consolidate where 1 no longer exists. It's not like the acquiring airline's value will just increase by the acquired company's value. Does the ETF take a hit?
I want some exposure to airlines and I'm considering the ETF vs picking certain airlines. It seems the majority of the ETF holdings are in the airlines I would be picking anyways. The ETF is trading at ~$22 and was ~$30 a year ago. It dropped below $15 in March and has been flat over last 3 months.
I personally look forward to flying somewhere once this is all done and I can't imagine airline travel doesn't get back to 100% of what it was before.
What are your thoughts?
Submitted January 18, 2021 at 08:04PM by redditsanchez https://ift.tt/2KqBcT1
