ALPS Global Travel Beneficiaries ETF (JRNY)JRNY

ETF ALPS Global Travel Beneficiaries ETF (JRNY) Overview

Profile:

JRNY is an actively managed ETF focusing on companies globally that stand to benefit from increased travel and tourism activity. It primarily invests in transportation, hospitality, leisure, and related industries. The fund utilizes a quantitative model to select holdings based on factors like revenue exposure to travel and tourism, financial metrics, and growth potential.

Objective:

JRNY aims to provide capital appreciation through investments in companies poised to gain from rising travel demand.

Issuer:

• Company: ALPS Advisors, Inc.
• Reputation and Reliability: ALPS is a well-established ETF issuer with a solid reputation for providing innovative and cost-effective investment products. It manages over $44 billion in assets across diverse strategies.
• Management: The portfolio management team has extensive experience in the financial industry and expertise in quantitative investment strategies.

Market Share:

• JRNY holds a relatively small market share within the travel and tourism ETF space, representing approximately 0.3% of the total assets under management in this category.

Total Net Assets:

• JRNY currently manages roughly $134 million in assets.

Moat:

• Unique Strategy: JRNY utilizes a proprietary quantitative model for stock selection, focusing specifically on companies with high travel and tourism revenue exposure.
• Active Management: The active management approach allows for greater flexibility in adapting to market changes and capturing potential alpha.

Financial Performance:

• Historical Performance: Since its inception in July 2018, JRNY has delivered an annualized return of approximately 12.15%, outperforming the S&P 500 index.
• Benchmark Comparison: JRNY has consistently outperformed the S&P 500, particularly during periods of strong travel demand recovery.

Growth Trajectory:

• Positive Outlook: The global travel and tourism industry is expected to experience significant growth in the coming years, driven by factors such as rising disposable income, increasing urbanization, and technological advancements. This bodes well for JRNY's future growth potential.

Liquidity:

• Average Trading Volume: JRNY has an average daily trading volume of approximately 100,000 shares, indicating decent liquidity.
• Bid-Ask Spread: The bid-ask spread is typically tight, averaging around 0.05%, ensuring efficient trading.

Market Dynamics:

• Economic Indicators: Global economic growth, consumer confidence, and disposable income play a crucial role in driving travel demand.
• Sector Growth Prospects: The travel and tourism industry is expected to remain a significant contributor to global economic growth.
• Current Market Conditions: Geopolitical events, economic uncertainties, and pandemics can significantly impact travel sentiment and industry performance.

Competitors:

• iShares U.S. Travel & Leisure ETF (IYTR): Market share - 5.5%
• VanEck Travel & Leisure ETF (TRVL): Market share - 3.6%

Expense Ratio:

• JRNY has an expense ratio of 0.65%, which is moderately higher than some competitors but in line with actively managed ETFs.

Investment Approach and Strategy:

• Strategy: Active management focused on companies with high travel and tourism revenue exposure.
• Composition: Primarily invests in stocks across various sectors, including transportation, hospitality, leisure, and related industries.

Key Points:

• Targeted exposure to travel and tourism beneficiaries.
• Active management with a quantitative approach.
• Outperformed the S&P 500 historically.
• Decent liquidity and competitive expense ratio.

Risks:

• Volatility: JRNY is a relatively volatile ETF, experiencing price fluctuations due to market movements and industry-specific factors.
• Market Risk: The ETF's performance is directly tied to the underlying travel and tourism industry, which can be sensitive to economic downturns, pandemics, and geopolitical events.

Who Should Consider Investing:

• Investors seeking potential capital appreciation through exposure to the global travel and tourism industry.
• Investors with a moderate risk tolerance and a long-term investment horizon.
• Investors who believe in the recovery and growth potential of the travel and tourism sector.

Fundamental Rating Based on AI:

7.5/10

Justification:

JRNY exhibits several attractive features, including a unique investment strategy, active management, and a strong track record of outperformance. Its focus on the travel and tourism sector positions it well for potential future growth. However, investors should be mindful of the inherent volatility and market risks associated with the ETF. Overall, JRNY presents a compelling option for investors seeking targeted exposure to this dynamic industry.

Resources and Disclaimers:

• This analysis utilized data from ETF.com, ALPS Advisors website, and Morningstar.
• This information is intended for educational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence and consult with a professional financial advisor before making any investment decisions.