Best airline ETFs to buy in 2024

The airline industry is making a post-pandemic return and investors are keeping close watch. This page provides a selection of the best airline ETFs this year.
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Updated: Oct 11, 2022
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The airline industry is crucial to global transport and investors are always on the lookout for new opportunities in this space. ETFs provide you the opportunity to simultaneously invest in various airline company stocks. This beginners guide has selected the best of the current market for you to place the right investment.

What are the top airline ETFs to buy?

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Our analysts have selected five of the best airline ETFs for this year as displayed in the table below. Continue scrolling further to learn more about each in turn.

#ETF symbolETF nameWhere to Trade
1XTNSPDR S&P Transportation ETF
Buy XTN

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

2IYTiShares US Transportation ETF
Buy IYT

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

3JETSUS Global Jets ETF
Buy JETS

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

4OOTODirexion Travel & Vacation ETF
Buy OOTO

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

5FTXRFirst Trust NASDAQ Transportation ETF
Buy FTXR

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

List chosen by our team of analysts, February 2024

1. SPDR S&P Transportation ETF (NYSEARCA: XTN)

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XTN is a fund that seeks to align with the yield and performance of the S&P Transportation Select Industry Index. Its 50 holdings feature companies in the transportation segment of the market. The fund provides niche exposure across large, mid, and small sized stocks, which makes it one of the best ETFs if you want exposure to the airline industry.

Although a small number of holdings means that long-term investors can take a more strategic and focused approach, there is also more scope for specific-holding risk when investing in XTN. You must do your own due diligence and fundamental analysis into holdings to best place your investment. 

Sign-up & trade XTN ETF

76% of retail CFD accounts lose money. Your capital is at risk.

2. iShares US Transportation ETF (BATS: IYT)

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IYT is a fund that corresponds with the investment results of an index composed of US equities in the transportation sector. The fund has 50 holdings in US companies within the airline, railroad, and trucking components of the transportation sector. As such, IYT provides an overview selection of the sector.

The performance of each segment is therefore key to fund performance. Investors must consider several factors that can adversely impact profitability, i.e. surging prices of fuel. You can minimise your risk by doing your own sector research before making an investment.

Sign-up & trade IYT ETF

76% of retail CFD accounts lose money. Your capital is at risk.

3. US Global Jets ETF (NYSEARCA: JETS)

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JETS is a fund that seeks to replicate the US Global Jets Index. Its 51 holdings constitute some of the biggest names in the airline industry, i.e. Delta Airlines, United Airlines, American Airlines, Southwest Airlines, Alaska Air. 

As the fund’s sole focus is on the airline industry, it does not hedge its risk of specific-industry performance against other industries. Investors must have faith in the recovery of the post-pandemic airline industry and invest with a long-term view of future growth.

Sign-up & trade JETS ETF

76% of retail CFD accounts lose money. Your capital is at risk.

4. Direxion Travel & Vacation ETF (NYSEARCA: OOTO)

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OOTO is a fund that is based on The Bluestar Travel and Vacation Index. The fund has a stringent criteria for its 51 holdings across US travel and vacation company stocks. A criterion that is relevant to the airline industry is that the fund only holds companies that either derive 50% or more of their revenue from, or devote 50% or more of their annual budget to commercial airlines.

The travel and vacation industry is currently in recovery and investors interested in OOTO should remember that it features the industries that have plummeted the most as a result of the pandemic. There is opportunity to buy the dip but it requires a mindset that acknowledges that high reward comes at the cost of high risk. 

Sign-up & trade OOTO ETF

76% of retail CFD accounts lose money. Your capital is at risk.

5. First Trust NASDAQ Transportation ETF (NASDAQGM: FTXR)

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FTXR is a fund that aims to reflect the performance of the NASDAQ US Smart Transportation Index. The fund’s small selection of 29 holdings are US companies in the transportation industry. Notable airline holdings include: Alaska Air, JetBlue Airways, Spirit Airlines, Delta Airlines, United Airlines.

Established names within the airline industry can reduce exposure to specific-holding risk in an ETF that only has such few holdings. Investors should consider the company fundamentals in doing their due diligence. This may provide an indication of profitability for the comeback of these reputed airline companies. 

Sign-up & trade FTXR ETF

76% of retail CFD accounts lose money. Your capital is at risk.

Where to buy the best airline ETFs

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Registering with an online broker is the first step to buy ETFs. ETFs are like individual stocks, you can buy or sell them as is convenient. The table below features our preference of the best brokers that offer airline ETFs.

Sort by:

1
Min. Deposit
$ 10
Best offer
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:
CySEC, FCA

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB.

2
Min. Deposit
$ 100
Best offer
User Score
9.9
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
Full Regulations:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

3
Min. Deposit
$ 0
Best offer
User Score
9.7
Diverse stock selection providing investors with a diverse array of options for their portfolios.
Advanced trading tools aiding in executing trades with precision in the dynamic stock market.
Easy portfolio management.
Start Trading
Payment Methods:
ACH, Bank Wire, Check
Full Regulations:
CFTC, FCA, FINRA, IIROC, NFA, NYSE, SIPC
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Register Entry Number 208159. Products are only covered by the UK FSCS in limited circumstances.

What is an airline ETF?

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It’s an exchange traded fund that holds shares in companies that operate in the airline industry. Companies in this sector provide a range of air transportation and travel services for consumers and cargo. Notable companies in the industry include Southwest Airlines, Delta Airlines, and United Airlines.

The industry is making a slow comeback after the severe plunge caused by the peak of the pandemic. Vaccine rollouts and easing of global travel restrictions inspires renewed hope. Investors interested in this space have the opportunities to buy the dip by investing in airline ETFs.

Are airline ETFs a good investment?

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Yes if you have the patience to hold out for a return in your investment. The airline industry is making a recovery after the pandemic hit it especially hard. If you are interested in buying the dip with airline ETFs, you must have a long-term outlook for speculative future growth. 

Airline ETFs provide means to broadly invest into the industry, but are not all created equal. You must do your own due diligence into significant holdings within each ETF to determine the profitability of your investment. Key metrics for your own fundamental analysis should include: Available Seat Miles (ASM) and Revenue Per Available Seat Mile (RASM).

The good news is, people will always travel and there will always exist a need for mail and cargo to be delivered as quickly as possible. The International Air Transport Association expects approx. 7.8 billion passengers to travel by air in 2036 – nearly double the number from 2017. Airlines are going nowhere and you can use the links below to best place your investment in airline ETFs.

Sign up to a broker to buy airline ETFs

Latest airline ETF news

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Vodafone Group plc (LON: VOD) is gaining at writing following news of renewed takeover interest. Here’s what we know so far A potential acquirer may be working with Goldman Sachs on such a deal. But a different source that talked to Betaville on condition of anonymity said it’s Jefferies who has bee
Rivian Automotive Inc (NASDAQ: RIVN) is down another 10% on Friday after a UBS analyst double downgraded the EV maker to “sell”. Rivian stock could tank another 20% Joseph Spak trimmed his price objective on the electric vehicles company as well from $24 to $8.0 which suggests another 20% downside f
Surely no stock on the planet is more talked-about right now than Nvidia (NVDA). Nvidia stock premarket this morning was still sitting near its all-time high price of $785.75 per share, which it hit yesterday after a bumper earnings call. As a result of all this, the Nvidia share price has been subj
Reddit is in focus this morning after Alex Kantrowitz – the founder of “Big Technology” likened it to a “smaller, more volatile” Twitter. Reddit to list on the NYSE under ‘RDDT’ His comment arrives a day after Reddit filed to list on the New York Stock Exchange under the ticker symbol “R
La Rosa Holdings (NASDAQ: LRHC) stock price has been one of the most volatile stocks in the past two days. The stock surged from Wednesday’s close of $1.31 to a high of $5.5, a 318% jump. It then ended the day at $2.74 and continued plunging by over 10% in the pre-market session. This trend [&hellip


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Srijani Chatterjee
Financial Writer
Srijani was a Financial Writer for Invezz covering stocks, investment funds, securities, and commodities. She is UK law-qualified and has worked in both the legal industry... read more.