5 ETFs To Make The Most From Fourth Of July

The COVID-19 pandemic has upset Americans Fourth of July celebrations this year, with most hesitating to go out of home, and join gatherings or attend public events.

Despite the coronavirus pandemic, many travelers will still be hitting the road for the Fourth of July weekend and beyond. This is especially true as AAA predicts that Americans will take roughly 700 million trips this Fourth of July holiday. Although this is a significantly lower number of travelers than AAA has forecast for Jul 4 in many years, the Independence Day weekend is expected to be 2020’s biggest travel weekend so far. Not many people will be flying to their destinations due to limited flight service but road trips will be a top travel trend, with motorists making up 97% of all Independence Day travel.

The pent-up demand lately due to the reopening of the economy coupled with low gas price will encourage road trips. Gas prices are currently 20% lower than a year ago. With reduced demand for gasoline as less people are leaving homes due the pandemic, the Independence Day will mark the lowest average price per gallon of gas on the holiday since 2004.

The celebration is incomplete without fireworks and barbecues. According to the National Retail Federation (NRF), about 76% of Americans plan to celebrate Independence Day, down from 86% last year, with total spending of $76 per person on average. The average spending is in line with historical trends. Cookouts, barbecues, and picnics continue to be the most popular activity (51%), followed by fireworks and community celebrations (24%). Investors should note that Independence Day marks the beginning of the busiest half of the year for retailers.

That said, this Fourth July will be a celebration of not only freedom but also economic growth. Along with the spirit of Americans, this Independence Day should lift revenues and profits in various corners. Industries like transportation, lodging, hotel, restaurants, food, and retail will benefit the most. Investors seeking to tap the fanfare could tap these industries through the following ETFs.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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