The travel industry is in growth mode again, even as concerns about the global economy linger. U.S. travel for leisure has reached healthy levels, while business travel has gradually returned to growth over the last few years. Demand for international travel is growing again, as well.
Over the course of the next decade, some estimates point to global travel spending increasing at an average of 5% to 6% annually -- double the expected average annual global gross domestic product (GDP) growth.
Investing in travel ETFs might make a lot of sense right now. If you think that the global consumer will travel more over the long term, buying a travel ETF could provide healthy investment returns.
Investing in top travel ETFs in 2025
The global travel industry is a large space that spans multiple sectors of the economy. Travel companies can include:
- Industrial companies such as airlines, vehicle makers (including RVs and bikes), and energy companies that make moving people possible in the first place (like companies that provide fuel or electricity).
- Destination-based businesses, such as theme park and cruise line operators, restaurants, hotels, and rental properties.
- Travel agencies, digital booking services, and other tools and services that facilitate travel.
Picking the right stocks in such a massive space can be tricky. But buying a travel ETF (exchange-traded fund) yields instant diversification by way of a large basket of travel industry stocks. Here are five worth a look for 2025:
ETF Name | Assets Under Management | Expense Ratio | Description |
|---|---|---|---|
U.S. Global Jets ETF (NYSEMKT:JETS) | $792 million | 0.6% | A large ETF focused on airline operators. |
Invesco Leisure and Entertainment ETF (NYSEMKT:PEJ) | $346.4 million | 0.57% | The oldest ETF on this list with a well-diversified portfolio of travel stocks. |
Amplify Travel Tech ETF (NYSEMKT:AWAY) | $46.1 million | 0.75% | A focused play on travel and accommodation technology. |
AdvisorShares Hotel ETF (NYSEMKT:BEDZ) | $2.79 million | 0.99% | For investors who want a focus on accommodations and travel real estate. |
Themes Airlines ETF (NASDAQ:AIRL) | $1.05 million | 0.35% | Designed to provide exposure to companies in the airline industry. |
1. U.S. Global Jets ETF
NYSEMKT: JETS
Key Data Points
The U.S. Global Jets ETF (JETS -0.58%) is by far the largest fund on our list, with client funds under management of close to $800 million as of this writing. The U.S. Global Jets ETF was launched in 2015. The annual fee is 0.6%, which works out to $6 per year deducted from the ETF's performance per $1,000 invested.
Most of the U.S. Global Jets ETF's portfolio consists of U.S. airline operators. Top holdings include Southwest Airlines (LUV -5.42%), Delta Air Lines (DAL -1.83%), and American Airlines (AAL +5.79%).
There are also stocks of international carriers in the mix, plus a few online travel booking stocks. However, the ETF will largely perform on the same plane as U.S. airline stocks.
2. Invesco Leisure and Entertainment ETF
NYSEMKT: PEJ
Key Data Points
The Invesco Leisure and Entertainment ETF (PEJ +0.94%) launched in 2005 and charges a 0.57% annual expense ratio.
The ETF provides a more diversified travel industry offering. Although it's limited to about 30 stocks in the leisure and entertainment industry, the fund invests in a broad range of businesses, including airlines, cruiselines, restaurants, promoter and venue manager Live Nation Entertainment (LYV -1.86%), and online travel giant Booking Holdings (BKNG -2.06%).
3. Amplify Travel Tech ETF
NYSEMKT: AWAY
Key Data Points
The Amplify Travel Tech ETF (NYSEMKT:AWAY) has about $46 million in funds under management and charges a 0.75% fee per year.
Since launching in February 2020, the Amplify Travel Tech ETF has been volatile, with periods of growth and pullbacks. However, the fund is invested in online and highly profitable travel software stocks such as Airbnb (ABNB -0.23%) and Booking Holdings.
There are also ride-hailing businesses like Uber (UBER +2.79%) in the mix, plus some smaller travel agencies and planning companies.
4. AdvisorShares Hotel ETF
NYSEMKT: BEDZ
Key Data Points
5. Themes Airlines ETF
NASDAQ: AIRL
Key Data Points
Travel investments are a long-term theme
Although the travel industry has gone through tremendous change over the past few years, this is an area of the global economy that should grow at a steady pace in the next decade. However, as is the case with other discretionary consumer spending, travel stocks can also be highly sensitive to overall economic health.
Expect plenty of bumps in the road. Nevertheless, for investors who believe that travel demand will continue to grow, a travel ETF could be a solid option for a well-diversified portfolio.
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