U.S. Global Investors Announces Merger of Europe-Domiciled Airlines ETF into the Travel UCITS ETF (TRIP), Expanding and Diversifying Investment Opportunities in Global Travel Industry
Sales at Big Three Cruise Lines Have Exceeded Pre-Pandemic Years
San Antonio, TX, April 23, 2024 (GLOBE NEWSWIRE) — U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with longstanding experience in global markets and specialized sectors, today is excited to announce that its Europe-domiciled airlines ETF, the U.S. Global Jets UCITS ETF, has merged into the Travel UCITS ETF (TRIP), effective April 19, 2024.
The Company acquired TRIP—which is also listed as TRYP in certain European markets—from HANetf, Europe’s first and only independent, full-service provider of UCITS ETFs. TRIP is not to be confused with U.S. online booking company TripAdvisor, which also trades under the ticker TRIP on the Nasdaq.
“We are very excited about this merger, and we believe TRIP will complement our suite of dynamic, smart beta 2.0 ETFs,” says Frank Holmes, the Company’s CEO and Chief Investment Officer.
The Company manages the U.S. Global Jets ETF (NYSE: JETS), a U.S.-based ETF that invests in commercial airlines, airport services companies, aircraft manufacturers and online booking companies. In 2021, in partnership with HANetf, the Company launched the U.S. Global Jets UCITS ETF as Europe’s first and only global airlines industry ETF. The JETS portfolio utilizes smart beta 2.0 fundamentals, meaning it combines passive investing and a more factor-based, quantamental approach.
TRIP, by comparison, seeks to track the Solactive Travel Index, which tracks publicly-listed companies involved in the travel business, including airlines, hotels, travel agencies and cruise lines.
Mr. Holmes believes cruise lines are an interesting addition to the global travel investment theme, which is why he championed the merger of the two UCITS products:
“Like commercial aviation, the cruise industry was one of the hardest hit during the pandemic, but in the months since, it’s seen a strong resurgence in demand,” Mr. Holmes says. “Cruise passenger volumes increased nearly 7% globally from 2019 to 2023, according to the Cruise Lines International Association (CLIA), with North America delivering the strongest growth at 17.5%.”
Greater demand for leisure travel has resulted in higher revenues for cruise lines. In 2023, the “Big Three” names—Carnival, Royal Caribbean and Norwegian—posted combined trailing 12-month net sales of around $44 billion, up from $38.2 billion in pre-pandemic 2019.
About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 50 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides investment advisory services to U.S. Global Investors Funds and U.S. Global ETFs.
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Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a statutory and summary prospectus by visiting www.usglobaletfs.com. Read it carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
Because the fund concentrates its investments in specific industries, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The fund is non-diversified, meaning it may concentrate more of its assets in a smaller number of issuers than a diversified fund. The fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets.
The fund may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the fund may diverge from that of the index. Because the fund may employ a representative sampling strategy and may also invest in securities that are not included in the index, the fund may experience tracking error to a greater extent than a fund that seeks to replicate an index. The fund is not actively managed and may be affected by a general decline in market segments related to the index.
Airline companies may be adversely affected by a downturn in economic conditions that can result in decreased demand for air travel and may also be significantly affected by changes in fuel prices, labor relations and insurance costs.
This news release may include certain “forward-looking statements” including statements relating to revenues, expenses, and expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.
The Company’s U.S.-based ETFs are distributed by Quasar Distributors, LLC. U.S. Global Investors, Inc. is the investment adviser to JETS. The Travel ETF is not available to U.S. investors.
Smart beta 2.0 is a blend of active and passive investing, following an index but also considering alternative factors. Smart beta ETFs rely less on market-cap weightings to avoid one stock overly influencing an ETF’s value. The Solactive Travel index tracks companies from around the world that are active in the travel and tourism sector.
All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice.
No assurance can be given that investments will be made into the companies discussed or that similar investments will be made.
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CONTACT: Holly Schoenfeldt U.S. Global Investors, Inc. 210.308.1222 hschoenfeldt@usfunds.com
