The Travel and Leisure market has been one of the most negatively affected markets over the past year, accounting for 39% of all jobs lost in the U.S. during COVID-19 shutdowns.1 In a short period of time, sporting events were cancelled, schools were closed, travel halted, the unemployment rate skyrocketed and those who were able to transitioned to remote work. As a result, travel spending saw a 42% annual decline in 2020 compared to 2019.2
We have come a long way to limit the spread of COVID through social distancing, mask wearing, and travel limitations. We now have increasing testing capabilities and distribution of multiple vaccines which are creating a proverbial light at the end of the tunnel. One result of the lockdowns is the pent up household savings rate which now sits at an elevated 13.7% according to the Federal Reserve Bank of St. Louis, up from 8.3% in February 2020.3 We think this pent up savings is creating a tailwind for the travel industry with 82% of U.S. families already setting travel plans for 2021.4 International travel may take longer to rebound, however, regional and domestic travel should come back at a more rapid pace. We think the technology names will benefit from this emergence in areas like travel bookings, price comparison, travel advice, and ride sharing.
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by calling 1-844-ETF-MGRS (1-844-383-6477), or by visiting www.etfmg.com/AWAY. Read the prospectus carefully before investing.
Investing involves risk, including 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. Narrowly focused investments typically exhibit higher volatility. Companies in the technology field, including companies in the computers, telecommunications and electronics industries, face intense competition, which may have an adverse effect on profit margins. Technology companies may have limited product lines, markets, financial resources or personnel. The products of technology companies may face obsolescence due to rapid technological developments and frequent new product introduction, and such companies may face unpredictable changes in growth rates, competition for the services of qualified personnel and competition from foreign competitors with lower production costs. Companies in the technology sector are heavily dependent on patent and intellectual property rights. The loss or impairment of these rights may adversely affect the profitability of these companies. The Fund is a recently organized, diversified management investment company with limited operating history.
ETF Managers Group LLC is the investment adviser to the Fund.
The Fund is distributed by ETFMG Financial LLC. ETF Managers Group LLC and ETFMG Financial LLC are wholly owned subsidiaries of Exchange Traded Managers Group LLC (collectively, “ETFMG”). ETFMG is not affiliated with Prime Indexes.
2. COVID-19 Travel Industry Research
3. Personal Saving Rate (PSAVERT)