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 believe 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 2026
The global travel industry is a large space that spans multiple sectors of the economy. Travel companies can include:
- Industrial companies such as airlines, automakers (including RVs and bikes), and energy companies that make moving people possible in the first place (e.g., 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 exchange-traded fund (ETF) yields instant diversification by way of a large basket of travel industry stocks. Here are four worth a look in 2026:
ETF Name | Assets Under Management | Expense Ratio | Description |
|---|---|---|---|
U.S. Global Jets ETF (NYSEMKT:JETS) | $797.61 million | 0.6% | A large ETF focused on airline operators |
Invesco Leisure and Entertainment ETF (NYSEMKT:PEJ) | $250.68 million | 0.57% | The oldest ETF on this list, with a well-diversified portfolio of travel stocks |
Amplify Travel Tech ETF (NYSEMKT:AWAY) | $34.45 million | 0.75% | A focused play on travel and accommodation technology |
AdvisorShares Hotel ETF (NYSEMKT:BEDZ) | $3.34 million | 0.99% | For investors who want a focus on accommodations and travel real estate |
1. U.S. Global Jets ETF
Launched in 2015, the U.S. Global Jets ETF (JETS +1.45%) is by far the largest fund on our list, with net assets topping $900 million in January 2026. Its annual fee is 0.6%, which works out to $6 per year deducted from the ETF's performance per $1,000 invested.
NYSEMKT: JETS
Key Data Points
Most of the U.S. Global Jets ETF's portfolio consists of U.S. airline operators. Top holdings include Southwest Airlines (LUV +3.12%), Delta Air Lines (DAL +2.02%), and American Airlines (AAL +2.34%).
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
The Invesco Leisure and Entertainment ETF (PEJ -0.89%) launched in 2005 and charges a 0.57% annual expense ratio. The ETF provides a more diversified travel industry offering.
NYSEMKT: PEJ
Key Data Points
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 -1.65%), and online travel giant Booking Holdings (BKNG -9.37%).
3. Amplify Travel Tech ETF
The Amplify Travel Tech ETF (NYSEMKT:AWAY) has about $31 million in net assets 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.
NYSEMKT: AWAY
Key Data Points
Look beyond the name and analyze the fund's actual underlying holdings and their weightings. Some ETFs focus narrowly on airlines, while others offer broader exposure to hotels, online booking services, or a mix of leisure and entertainment companies.
Compare the annual operating fees of the ETF you're evaluating, as even small differences can impact long-term returns. Be sure to assess how well the ETF's performance tracks its underlying index, too.
Benefits and risks of investing in travel ETFs
Investing in travel ETFs can offer investors a way to capitalize on the potential growth of the global tourism industry. Travel ETFs hold a basket of stocks across the industry, which can mitigate the risk associated with a single company underperforming and adversely impacting your portfolio.
Investors can gain exposure to the entire travel and leisure sector through a group of stocks that benefit from overall industry trends like the shift toward experiential spending and a growing global middle class. Travel ETFs also generally have lower expense ratios compared to actively managed mutual funds.
Bear in mind, the travel industry is highly sensitive to external shocks, including geopolitical events, natural disasters, health crises (like pandemics), and economic downturns, which can lead to significant fluctuations in stock and ETF prices. Demand for travel is closely tied to the health of the overall economy, so during economic recessions, consumer and business travel tend to decline.
Volatile fuel prices, rising labor costs, and supply chain issues can squeeze profit margins for these businesses in a wide range of economic environments, too. As with any investment, the travel ETF you choose should align with your overall investment and risk preferences, as well as the general balance of investments you want your portfolio to feature.
Related investing topics
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 over 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.
FAQ
Investing in travel ETFs: FAQ
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