Five ETFs To Make The Most Of July Fourth Celebrations

Tasty cake with flag on bunch of paper dollars

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The Fourth of July, a significant holiday in the United States, is traditionally associated with barbecues, fireworks, and patriotic celebrations. Recent reports indicate that Americans are gearing up to spend more than ever on this occasion.

Despite concerns about inflation and rising prices, consumer spending during this Independence Day is expected to reach new heights. Total consumer spending for the Fourth of July holiday is expected to reach $9.5 billion, up from $7.7 billion in 2022 and $7.5 billion the year before, according to the National Retail Federation. The 23% jump in spending this year is the biggest recorded by the survey — which goes back to 2014 — even higher than the 15% increase in 2021 as post-pandemic recovery began.

About 87% of Americans plan to spend $93.34 per person this Independence Day, up from $84.12 in 2022 and well above the 5% bounce-back in spending that the first pandemic recovery year of 2021 delivered. Cookouts, barbecues and picnics continue to be the most popular activity (65%), followed by fireworks and community celebrations (37%). As such, Independence Day marks the beginning of the busiest half of the year for retailers. Many retailers are already flashing exciting deals for the Fourth of July, and massive discounts are in the cards for a specific day.

Travel is also in full swing this summer despite fewer overall flights and higher airfares. AAA projects that about 51 million people will travel 50 miles or more from home on the weekend (Jun 30 to Jul 4), up more than 4% from last year. This will set a new milestone for the holiday, with car and air travel volumes expected to reach new highs. Of them, 43.2 million will go on road trips, 4.17 million will fly and 3.3 million will travel by trains, buses and cruises.

Low gas prices are encouraging more drivers to hit the road. As of Jun 30, the national average for a gallon of regular gasoline was hovering around $3.54, down 4 cents from a week ago and $1.31 lower than year-ago levels, according to the latest data from AAA. As such, motorists will collectively save $2.6 billion on gas over the Fourth of July weekend compared to a year ago, GasBuddy estimated.

The U.S. trade group Airlines for America stated that airlines are preparing for record air travel this summer. The 4.17 million Americans projected to fly over the holiday weekend is an 11.2% increase over the same weekend last summer — and 6.6% higher than in 2019, before the pandemic began. Passengers are paying 40-50% more for flights than last year.

According to AAA data, hotel prices are also up slightly over 2022. While the number of domestic hotel bookings is about the same as last year, international hotel bookings are up 80% from 2022. Car rental shortages seen during the pandemic have improved. Rental prices are down slightly, and demand for international rental cars is up more than 80% from last year.

That said, this Fourth of 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 travel & leisure, lodging, hotel, restaurants and retail will benefit the most. Investors seeking to enjoy the fanfare could tap these industries through the following ETFs.

ALPS Global Travel Beneficiaries ETF (JRNY - Free Report)

ALPS Global Travel Beneficiaries ETF provides diversified exposure to the global travel industry by tracking the S-Network Global Travel Index. The fund invests in 75 companies engaged in booking and rental agencies, airlines and airport services, hotels, casinos and cruise lines, along with travel-related companies identified through machine learning algorithms, such as luxury retail, entertainment, leisure, food and beverage and payment processing vendors.

ALPS Global Travel Beneficiaries ETF has accumulated $6.4 million in its asset base and charges 65 bps in annual fees. JRNY trades in an average daily volume of 1,000 shares.

U.S. Global Jets ETF (JETS - Free Report)

U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. The product holds 51 securities and charges 60 bps in annual fees.

U.S. Global Jets ETF has gathered $2 billion in its asset base while seeing a heavy trading volume of nearly 3 million shares a day. JETS has a Zacks ETF Rank #3 (Hold) with a High-risk outlook.

Kelly Hotel & Lodging Sector ETF (HOTL - Free Report)

Kelly Hotel & Lodging Sector ETF tracks the Strategic Hotel & Lodging Sector Index, which measures the performance of companies that specialize in providing hotel, motel, lodging, residential and timeshare properties management services, operational services, including lodging platform services (e.g., global marketplaces for private accommodations) and companies that own or lease hotels, motels, lodges, resorts, timeshare properties. It holds 37 stocks in its basket, with a concentration on the top four firms.  

Kelly Hotel & Lodging Sector ETF has accumulated $0.7 million in its asset base while charging 78 bps in annual fees. It trades in an average daily volume of about 100 shares.

AdvisorShares Restaurant ETF (EATZ - Free Report)

Restaurants will benefit as more consumers eat out. AdvisorShares Restaurant ETF is actively managed and the only fund investing exclusively in the restaurant and foodservice industry, including restaurants, bars, pubs, fast food, take-out facilities, food catering services and more. AdvisorShares Restaurant ETF holds 25 securities in its basket with a higher concentration on the top firm.

AdvisorShares Restaurant ETF gathered $2.5 million in its asset base. EATZ charges 99 bps as annual fees and trades in an average daily volume of 900 shares.

SPDR S&P Retail ETF (XRT - Free Report)

SPDR S&P Retail ETF tracks the S&P Retail Select Industry Index, which provides exposure across large, mid and small-cap stocks. It holds well-diversified 87 stocks in its basket, with none making up for more than 2.1% share. SPDR S&P Retail ETF is well spread across various industries with a double-digit allocation each in automotive retail, specialty stores, apparel retail, and broadline retail.

SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $476.3 million and an average trading volume of 5.6 million shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.

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Disclosure: 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 ...

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