The travel industry is in growth mode again, even as concerns about global economies linger. U.S. travel for leisure has reached healthy levels, and business travel has gradually returned to growth over the last few years. The same goes for international travel activity.
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 growth of the global economy.
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.
Top travel ETFs in 2025
Investing in top travel ETFs in 2025
The global travel industry is a large space that spans multiple sectors of the economy. On one end are industrial companies such as airlines, vehicle makers (including RVs and bikes, for example), and energy companies that make moving people possible in the first place. On the other end are destinations such as theme park and cruise line operators, restaurants, and accommodations such as hotels and rental properties.
Connecting the two are travel agencies, digital booking services, and other tools that help 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) | $1.08 billion | 0.6% | A large ETF focused on airline operators. |
| Invesco Leisure and Entertainment ETF (NYSEMKT:PEJ) | $292.29 million | 0.57% | The oldest ETF on this list with a well-diversified portfolio of travel stocks. |
| Amplify Travel Tech ETF (NYSEMKT:AWAY) | $59.14 million | 0.75% | A focused play on travel and accommodation technology. |
| Defiance Hotel, Airline, and Cruise ETF (NYSEMKT:CRUZ) | $31.94 million | 0.45% | Another focused ETF on hotels, air travel, and maritime vacations. |
| AdvisorShares Hotel ETF (NYSEMKT:BEDZ) | $4.11 million | 0.99% | For investors who want a focus on accommodations and travel real estate. |
1. U.S. Global Jets ETF
The U.S. Global Jets ETF is by far the largest fund on our list, with client funds under management of more than $1 billion as of this writing. It's also the only ETF focused on the airline industry, an absolutely essential business for the travel space. 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.
The majority of the U.S. Global Jets ETF's portfolio is dedicated to U.S. airline operators. Top holdings include Southwest Airlines (LUV 1.32%), Delta Air Lines (DAL 0.28%), and American Airlines (AAL 4.09%). There are also stocks of international carriers in the mix, as well as a few online travel booking stocks. However, by and large, the ETF will perform on the same plane as U.S. airline stocks. This fund is for investors who think air travel volumes will gradually increase over time.
2. Invesco Leisure and Entertainment ETF
The Leisure and Entertainment ETF is from the large investment company Invesco (IVZ 0.98%). The ETF has been around since 2005 and has amassed more than $292 million in client funds. It charges a 0.57% annual expense ratio.
The ETF is a more well-diversified travel industry offering. Although it is limited to 31 stocks in the leisure and entertainment industry, companies in the portfolio include businesses such as event promoter and venue manager Live Nation Entertainment (LYV 2.21%) and online travel giant Booking Holdings (BKNG 2.25%).
3. Amplify Travel Tech ETF
The Amplify Travel Tech ETF has about $59 million in funds under management and charges 0.75% per year. This is also a newer ETF that launched in early 2020.
Since launching in February 2020, the Amplify Travel Tech ETF has remained volatile, with periods of growth and pullbacks. However, the fund is invested in online and highly profitable travel software stocks such as Airbnb (ABNB 3.41%) and Booking Holdings.
There are also ride-hailing businesses such as Uber (UBER 1.62%) in the mix, as well as smaller travel agencies and planning companies.
4. Defiance Hotel, Airline, and Cruise ETF
The next ETF is also a newer offering, having launched over the summer of 2021. The Defiance Hotel, Airline, and Cruise ETF was built to capture investor interest in a rebound in the global travel industry. The fund manages around $32 million and charges 0.45% a year.
The Defiance Hotel, Airline, and Cruise ETF is comprised of 55 stocks. Top holdings include Marriott International (MAR 2.0%), Delta Airlines, and major cruise line Carnival (CCL 5.02%). The ETF could be a top pick for investors who want focused exposure to lodging accommodations, air travel, and cruises.
5. AdvisorShares Hotel ETF
This last ETF, by far the smallest with a little more than $4 million in client funds under management, is another niche travel offering. The AdvisorShares Hotel ETF focuses on hotels, accommodations, cruises, and related travel sub-industries. As an actively managed fund, it has a higher expense ratio of 0.99% per year.
The fund managers focus on profitable businesses that have a dominant position among their competitors. As of early 2025, top stocks in the portfolio included oil and gas worker housing specialist Target Hospitality (TH 0.18%) and cruise companies Viking Holdings (VIK 4.48%) and Royal Caribbean Cruises Ltd (RCL 3.6%).
The ETF has held up relatively well so far compared to some of its peers on this list.
Related investing topics
Related investing topics
Should you invest?
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 travel will keep expanding for years to come, investing in a travel ETF could be a solid option for a well-diversified portfolio that includes other investment themes.
