Assuming you have a 3-5 year time horizon, when covid should be non-existent- shouldnt the airline stocks bounce back to 2019 highs? In that case is it good to dollar cost average into buying JETS ETF now, which tracks the US airline industry? What if one of the airlines (which the ETF tracks by weighted average) goes bankrupt- how would the ETF be impacted? I assume under no circumstances can the fund be allowed to go under and have investors lose money right? Please advise if u feel JETS is a good buying option for a 3-5 year investment time horizon? Its >50% down for the year. #investments #personalfinance
Question is , you have limited dollars to invest, so why not invest in something promising? If you look around there are lots of pandemic resistant tech and non tech companies Eg: Amazon and clorox
Think you will be waiting a lot more time than you think for an increase in airlines. Think a general transportation etf life XTN which has about 15% overlap with Jets so it has the major airlines but it’s heavy on freight liners, shipping companies, Uber etc... all which has be suppressed. If unsure... go with the basics like VOO / VTI and maybe add a little Jets if you like.
After 9/11, United went to bankruptcy. It means the stocks held by the shareholders at that time became garbage (I have an experience in this, not United but one of energy companies). And the current shareholders are for the newly issued stocks. Since the industry is expecting some airliners will go bankruptcy, JETS will reflect some of those. My recommendation is to go with the companies financially sound such as LUV (southwest or Delta or maybe United - higher risk than the first two).
How do you justify a JET company is financially sound?
I bought it at $12. My logic behind jets is that we don't have the infrastructure to replace air travel with trains or rockets etc. Sure things might slow down with need for business trips in favor of remote or unemployment causing less people to go on vacations. Eventually things will come back and while some of the airlines will weather this better than others hopefully Jets can capture that general move back towards normalcy. However air travel isn't necessarily the type of industry I want to be betting on long term.