The travel sector, largely decimated in 2020 by the global pandemic, has gotten a proverbial “shot in the arm” so far in 2021 resulting from widespread COVID vaccinations. As of April 18th of this year, over half (50.4%) of the U.S. adult population had received at least one dose of a vaccine with close to one-third (32.5%) of the same population being fully inoculated.1 The rise in vaccinations appears to be in line with a variety of positive leading indicators for the travel industry.
On the ground: Ride sharing companies Lyft and Uber are seeing sharp upticks in volume. Lyft saw its highest ridership for the week ending February 28th since March 20202 and, more recently, Uber saw its highest monthly gross bookings in company history for the month ending March 31st.3 Both companies have since introduced new driver incentives to ramp up supply in order to meet expected demand.4 Airbnb is seeking millions of more hosts to support an anticipated supply/demand imbalance for future travelers.5 “… we think there’s going to be a travel rebound coming that’s unlike anything we’ve ever seen,” says Airbnb CEO, Brian Chesky.
In the air: TSA checkpoint data, which measures the amount of passengers traveling through TSA checkpoints on a daily basis, have shown passengers increasing at a rate of 5% on a weekly basis6 and now hover between 49% and 69% of pre-pandemic (2019) passenger levels for the period April 1st – April 18th.7 Major airlines including (but limited to) United, JetBlue, Spirit, and American have each announced plans to hire new staff in order to increase capacity come summer time.8 According to an Expedia Group study, travelers are turning to online travel agents for trip planning nearly 25% more than they were pre-pandemic to assist in navigating the tricky landscape that pandemic traveling entails as well as for price comparison and itinerary formation.9
Looking ahead, many expect a years-long travel boom to result from pandemic related measures. Regional and domestic travel will likely be the quickest to rebound while the return to international and business travel will have a slower, incremental rollout. According to a Trip.com SEC filing, the global travel market is expected to increase from $4.7 trillion by the end of 2021 to $7.1 trillion by the end of 2025, growing at a CAGR of 10.6% for the period.10
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. Companies mentioned may or may not be current holdings in the fund and are subject to change without notice.
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.
The Fund is intended to be made available only to U.S. residents. Under no circumstances is any information provided on this website intended for distribution to or use by, or to be an offer to sell to or solicitation of an offer to buy the Fund or any investment product or service of, any person or entity in any jurisdiction or country, other than the United States, where such distribution, use, offer or solicitation would subject the Fund or its affiliates to any registration requirement or be unlawful under the securities laws of that jurisdiction or country. Noah Hutkin is a registered representative of ETFMG Financial LLC.