Are travel ETFs suitable for long-term or short-term investing?

Travel ETFs are generally better suited to long-term investors due to the travel industry's inherent volatility and sensitivity to economic conditions. A long-term buy-and-hold approach can help you weather short-term market fluctuations and potentially capitalize on the industry's sustained growth over time.

Which sectors are included in a typical travel ETF?

A typical travel ETF may include sectors such as airlines, hotels/accommodations, cruise lines, online travel agencies, booking platforms, transportation services, and even entertainment/leisure venues.

What fees or expenses are associated with travel ETFs?

Travel ETFs have expense ratios (management/operating fees) that range from 0.4% to 0.99% annually, depending on the specific fund.

How do economic downturns affect travel ETFs?

Economic downturns typically hurt travel ETFs. Reduced consumer spending and corporate cost-cutting lead to decreased demand for airlines, hotels, and cruises, causing volatility and price declines in these cyclical assets. Travel stocks are highly sensitive to reduced disposable income and often underperform during recessions. However, history shows that travel demand is resilient and typically rebounds favorably as economies recover and travel budgets are reinstated. Despite short-term volatility, the long-term trend for travel remains positive. This creates investment opportunities, as experiential spending remains a high priority for consumers.

Best Travel ETFs for 2026 and How to Invest

Whether for business or leisure, travel is back and bigger than ever. Here's how to get in on this sector.

By Rachel Warren – Updated Apr 16, 2026 at 12:04 PM EST | Fact-checked by Margo Winton Parodi

Key Points

Global travel spending may grow 5-6% yearly, overtaking global GDP growth rates.
Investing in travel ETFs offers exposure to diverse travel-related industries.
Top travel ETFs include JETS and PEJ, focusing on airlines and leisure.

Investors interested in getting a piece of the travel market may want to consider buying travel ETFs (exchange-traded funds). The travel industry is in growth mode again, even as concerns about the global economy linger. U.S. leisure travel has reached healthy levels, while business travel has gradually returned to growth over the last few years.

Over 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. If you believe the global consumer will travel more over the long term, buying a travel exchange-traded fund could provide healthy investment returns.

4 top travel ETFs for 2026

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Data source: Yahoo! Finance data current as of Apr. 16, 2026. ETF = exchange-traded fund.
ETF Name	Assets Under Management	Expense Ratio	Description
U.S. Global Jets ETF (NYSEMKT:JETS)	$653.65 million	0.60%	A large ETF focused on airline operators
Invesco Leisure and Entertainment ETF (NYSEMKT:PEJ)	$239.05 million	0.57%	The oldest ETF on this list, with a well-diversified portfolio of travel stocks
Amplify Travel Tech ETF (NYSEMKT:AWAY)	$23.99 million	0.75%	A focused play on travel and accommodation technology
AdvisorShares Hotel ETF (NYSEMKT:BEDZ)	$1.71 million	0.99%	For investors who want a focus on accommodations and travel real estate

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Travel touches many industries: airlines, hotels, cruise lines, booking platforms, and more. Picking individual stock winners can be tough, which is why buying ETFs can make sense. That way, you'll spread your investment out over a basket of stocks rather than having to handpick one or several individual companies to invest in. That provides instant diversification in an investment portfolio.

Let's take a closer look at four of the top travel ETF options.

1. U.S. Global Jets ETF

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NYSEMKT: JETS

ETF Series Solutions - U.s. Global Jets ETF

Today's Change

(3.15%) $0.93

Current Price

$30.46

Key Data Points

Day's Range

$30.42 - $31.32

52wk Range

$21.03 - $31.33

Volume

5.1K

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Launched in 2015, the U.S. Global Jets ETF (JETS +3.15%) is by far the largest fund on our list. Its annual fee is 0.60%, 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 +1.34%), Delta Air Lines (DAL +1.14%), and American Airlines (AAL +3.24%).

There are also stocks of international carriers in the mix, plus a few online travel booking stocks. However, the ETF will largely perform in line with U.S. airline stocks.

2. Invesco Leisure and Entertainment ETF

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NYSEMKT: PEJ

Invesco Exchange-Traded Fund Trust - Invesco Leisure And Entertainment ETF

Today's Change

(0.21%) $0.14

Current Price

$65.34

Key Data Points

Day's Range

$65.14 - $65.78

52wk Range

$53.56 - $65.78

Volume

85.6K

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The Invesco Leisure and Entertainment ETF (PEJ +0.21%) launched in 2005 and charges an annual expense ratio of 0.57%. The ETF provides diversified coverage of travel industry stocks.

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, cruise lines, restaurants, and more.

3. Amplify Travel Tech ETF

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NYSEMKT: AWAY

ETF Managers Trust - Etfmg Travel Tech ETF

Today's Change

(0.00%) $0.00

Current Price

$0.00

Key Data Points

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The Amplify Travel Tech ETF (NYSEMKT:AWAY) charges a 0.75% annual expense ratio. 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 +5.00%). There are also ride-hailing businesses, like Uber (UBER +5.81%), in the mix, as well as some smaller travel agencies and planning companies.

4. AdvisorShares Hotel ETF

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NYSEMKT: BEDZ

AdvisorShares Trust - AdvisorShares Hotel ETF

Today's Change

(0.87%) $0.32

Current Price

$36.90

Key Data Points

Day's Range

$36.86 - $37.14

52wk Range

$29.98 - $37.14

Volume

1.6K

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Benefits and risks of investing in travel ETFs

As with all investments, travel ETFs have both benefits and drawbacks that potential investors should be aware of.

Potential benefits

Instant diversification
Exposure to global travel demand
Access to experiential spending trends

Key risks

Economic downturns hit travel hard
Fuel and labor costs can pressure profits
External shocks (health crises, geopolitics, disasters)

Travel stocks can be cyclical and volatile, so bear that in mind before you add shares to your portfolio.

Should you invest in travel ETFs?

Although the travel industry has undergone tremendous change over the past few years, it is an area of the global economy that should grow steadily over the next decade. However, as with other discretionary consumer spending, travel ETFs can also be highly sensitive to overall economic health.

Expect plenty of bumps in the road when investing in travel ETFs. 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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FAQ

Investing in travel ETFs: FAQ

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About the Author

Rachel Warren is a contributing Motley Fool stock market analyst covering pharmaceuticals, biotechnology, medical devices, information technology, and consumer goods. Prior to The Motley Fool, Rachel was a paralegal and legal administrator. She holds a bachelor’s degree in paralegal studies from Liberty University School of Law.

TMFRachelW

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Booking Holdings, and Uber Technologies. The Motley Fool recommends Delta Air Lines, Live Nation Entertainment, Southwest Airlines, and Viking. The Motley Fool has a disclosure policy.

Best Travel ETFs for 2026 and How to Invest

Whether for business or leisure, travel is back and bigger than ever. Here's how to get in on this sector.

Key Points