Many countries around the globe are planning for a return to normal, and that could mean a big year for the travel industry. But rather than buying hotel stocks, airline stocks, or shares of cruise lines, you can just invest in a single exchange-traded fund (ETF) that encompasses all those opportunities in just one investment.
This is where the SonicShares Airlines, Hotels, Cruise Lines ETF (NYSE Arca: TRYP) comes into play. The fund gives investors exposure to some of the top travel stocks in the world. Its top holding is the Royal Caribbean (NYSE:RCL), which accounts for just over 5% of the fund's total net assets. Other top holdings include Marriott International (NASDAQ:MAR) and Delta Air Lines (NYSE:DAL). They each account for over 4% of the ETF's weight.
Thus far in 2022, the fund's returns have been flat -- but that's still better than the S&P 500, which has declined by 5%. And now may be an optimal time to invest in the ETF. With oil prices up and people feeling bearish on airline stocks, the stocks in this fund likely aren't doing as well as they otherwise would be. The ETF will likely do better in the months ahead and when travel season arrives. By that time, hopefully, oil prices also fall back down.
The fund hasn't been around a full year yet (it launched May 2021) and so it doesn't have much of a track record. But it can be a convenient way to bet on pent-up travel demand as consumers look to return to their normal pre-pandemic spending and travel habits in 2022.
