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Saving For the Next Vacation Gets Upgraded With New Travel ETF

Published 10/29/2019, 02:23 AM
Updated 10/29/2019, 06:59 AM
© Reuters.  Saving For the Next Vacation Gets Upgraded With New Travel ETF
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(Bloomberg) -- You can soon save for your next vacation with an exchange-traded fund focused on the companies that will take you there.

The ETFMG Travel Tech ETF, ticker AWAY, will track the performance of a gauge of companies that provide technology for hotel reservations, ride sharing and travel advice, according to a regulatory filing. Booking (NASDAQ:BKNG) Holdings Inc. and Uber Technologies (NYSE:UBER) Inc. are among its biggest components.

Those stocks have outperformed the benchmark measure of U.S. equities this month, defying concern over an economic slowdown. That’s been possible in part due to an upbeat outlook for travel tech companies’ growth prospects among younger generations. Travel and tourism have contributed a record $8.8 trillion to the global economy last year, according to a council that represents more than 170 industry companies.

“It’s certainly a theme that investors are interested in,” said Andy Wester, an analyst at Proficio Capital Partners. “Travel can’t really be disrupted, there’s always going to be a business getting from point A to point B.”

The travel tech fund is the latest offering from ETF Managers Group, which also runs the ETFMG Alternative Harvest ETF, with investments in cannabis-related companies. The new fund’s management fee was not disclosed.

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