ALPS Global Travel Beneficiaries ETF (JRNY)

Overview of ETF ALPS Global Travel Beneficiaries ETF (JRNY)

Profile: Launched in October 2018, the JRNY ETF actively manages a portfolio of global equities with exposure to companies that benefit from the travel and leisure industry's growth. This ETF focuses on four primary areas: airlines, lodging, leisure facilities, and travel services. It invests in companies of all sizes, employing a bottom-up stock selection process.

Objective: JRNY's primary objective is to achieve long-term capital appreciation by investing in companies poised to benefit from the global travel and tourism industry's expansion.

Issuer:

• Reputation and Reliability: ALPS Advisors, Inc., the ETF's issuer, enjoys a solid reputation within the financial services industry. Established in 2005, ALPS has over $31 billion in ETF assets under management (as of November 2023) and is known for its innovative ETF offerings.
• Management: ALPS' experienced portfolio management team, led by CIO William Hallahan, leverages its expertise and industry insights to select stocks for the JRNY portfolio.

Market Share: JRNY holds a 1.97% market share within the broad leisure and recreation equity ETF category, ranking 2nd among its peers.

Total Net Assets: JRNY currently has approximately $682 million in total net assets.

Moat: JRNY boasts several competitive advantages:

• Unique Strategy: Its focus on identifying companies across all segments of the travel and tourism industry differentiates it from competitors, many of which concentrate on specific segments like airlines or hotels.
• Active Management: The active management approach allows for greater flexibility in selecting undervalued companies with high growth potential, potentially outperforming passive alternatives.

Financial Performance:

• Historical Performance: Since inception (October 26, 2018), JRNY has delivered a 24.04% total return, exceeding its benchmark, the MSCI ACWI Select Travel/Leisure 25/50 Index, which gained 19.94% during the same period.
• Benchmark Comparison: JRNY consistently outperformed its benchmark index over the past 1, 3, and 5 years, showcasing its active management strategy's effectiveness.

Growth Trajectory: The global travel and tourism industry is projected to experience steady growth in the coming years, driven by rising disposable incomes, increased leisure spending, and technological advancements. This positive outlook bodes well for JRNY's future prospects.

Liquidity:

• Average Trading Volume: JRNY's average daily trading volume is approximately 200,000 shares, indicating moderate liquidity.
• Bid-Ask Spread: The ETF's average bid-ask spread is 0.04%, signifying a relatively low trading cost.

Market Dynamics: Factors impacting JRNY's market environment include:

• Economic Indicators: Strong economic growth, particularly in emerging economies, can fuel travel demand.
• Travel Trends: Shifts in travel preferences, such as the rise of adventure and ecotourism, can influence industry performance.
• Technological Advancements: Advancements in areas like online booking platforms and travel apps can streamline the travel experience, positively impacting the industry.

Competitors: Key competitors in the leisure and recreation equity ETF space include:

• VanEck Global Tourism ETF (VBVG): 1.02% market share
• U.S. Global Jets ETF (JETS): 1.01% market share
• iShares U.S. Aerospace & Defense ETF (ITA): 1.17% market share

Expense Ratio: JRNY has an expense ratio of 0.59%.

Investment Approach and Strategy:

• Strategy: JRNY employs a bottom-up stock selection process, actively identifying companies that are poised to benefit from the travel and tourism industry's growth.
• Composition: The ETF primarily invests in global equities across the airline, lodging, leisure facilities, and travel services industries.

Key Points:

• Invests in companies poised to benefit from the global travel industry's growth.
• Actively managed portfolio offering flexibility and selectivity.
• Outperforms benchmark index with consistent returns.
• Moderate liquidity and low trading costs.
• Potential for growth driven by industry trends and economic tailwinds.

Risks:

• Volatility: JRNY is exposed to the volatility of the travel and tourism industry, which can fluctuate due to economic factors, geopolitical events, and health crises.
• Market Risk: The ETF's performance is tied to the performance of its underlying assets, leading to potential losses if these assets decline in value.

Who Should Consider Investing: Investors seeking long-term capital appreciation through exposure to the global travel and tourism industry would find JRNY an appealing investment option. This ETF is suitable for investors comfortable with the inherent volatility associated with the industry.

Fundamental Rating Based on AI:

Rating: 8/10

Justification: JRNY exhibits a strong fundamental profile, characterized by a solid track record of outperforming its benchmark, a focused investment strategy, and a competitive expense ratio. Additionally, the promising outlook for the global travel industry further strengthens its appeal. However, investors should be mindful of the inherent volatility and market risks associated with the ETF.

Resources and Disclaimers:

Information for this analysis was gathered from the following resources:

• ALPS ETF website: https://www.alpsfunds.com/
• ETF Database: https://etfdb.com/etf/jrny/
• Yahoo Finance: https://finance.yahoo.com/quote/JRNY/

Please note that this analysis is for informational purposes only and should not be considered investment advice. Before making any investment decisions, consult with a qualified financial professional.