Airline ETF rallies as stocks hit multimonth highs

Airline ETF rallies as stocks hit multimonth highs

The U.S. Global Jets exchange-traded fund rose 2.3% Thursday afternoon, outperforming the broader stock market [s:SPX], which traded near unchanged, as airline stocks jumped higher on hopes for a fiscal stimulus package. Southwest Airlines Co. LUV, +5.24% shares, which make up JETS’ biggest position, were 4.2% higher, putting the company on track for its best day since August 24. Delta Air Lines, Inc., its second-biggest holding, was up 4.5%, its best day in about a month.

JetBlue Airways Corp JBLU, +8.96% shares were up 7% and also on track for its best day since August 24, but it makes up a much smaller portion of the JETS portfolio: about 4%, compared to 10% for Southwest and Delta. JETS has been a popular trade for investors interested in making big macro bets on one of the most public faces of the pandemic downturn and recovery.

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