Listed options are now available to market participants on the U.S. Global Jets ETF (NYSE: JETS), the only global airline industry ETF on the market. Using options tied to JETS, investors have additional opportunities to gain exposure to the airline industry with a smaller capital requirement.
Numerous options strategies can be utilized to gain access to the airline industry such as:
- covered call writing
- entering into call spreads
- buying puts
These are merely examples of the additional opportunities now available. Keep in mind such strategies will vary among different investors and in different markets.
JETS is a smart beta, passively managed fund that is designed to track the U.S. Global Jets Index. Candidates for inclusion must be members of the airlines, aircraft manufacturing, or airports & terminal service industries. Since its April 30 launch date, assets in JETS have grown to over $17 million.
About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. is an innovative investment manager with vast experience in global markets and specialized sectors. Founded as an investment club, the company became a registered investment adviser in 1968 and has a longstanding history of global investing and launching first-of-their-kind investment products. U.S. Global Investors is well known for expertise in gold and precious metals, natural resources and emerging markets.
Since 1989, U.S. Global Investors has been led by CEO Frank Holmes, who purchased a controlling interest in the company that same year. U.S. Global Investors is a publicly traded company (NASDAQ symbol: GROW) headquartered in San Antonio, Texas.
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 www.usglobaletfs.com or by calling 844.ETF.JETS (844.383.5387). 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.
Distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment adviser to JETS.
All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice. By clicking the link(s), you will be directed to a third-party website(s). U.S. Global ETFs does not endorse all information supplied by this/these website(s) and is not responsible for its/their content.
The U.S. Global Jets Index seeks to provide access to the global airline industry. The index uses various fundamental screens to determine the most efficient airline companies in the world, and also provides diversification through exposure to global aircraft manufacturers and airport companies. The index consists of common stocks listed on well-developed exchanges across the globe. It is not possible to invest directly in an index.
Smart beta refers to investment strategies that emphasize the use of alternative weighting schemes to traditional market capitalization based indices.
Call writing is when an investor receives a premium and takes on, for a specified time, the obligation to sell the underlying security at a specified price at the call buyer’s discretion.
Put buying is when an investor pays a premium for an option contract and receives, for a specified time, the right to sell the underlying security at a specified price.
Entering into a call spread is an option investor’s position in which the investor buys a call on a security and writes a call on the same security but with a different expiration date, exercise price or both.
The fund may also use options which have the risks of unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates and currency exchange rates. The investment in options is not suitable for all investors.
Susan Filyk, 210-308-1286