Travel ETF offers exposure to fast-growing industry

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The ETF structure is tax efficient, allows for intraday tradability and offers diversification that ranges from broad market exposure to thematic exposures, according to one expert.

, or ETFs, are a pooled type of investment, which resembles a mutual fund that can offer an investor an opportunity to track a particular index or market sector. , the ETFMG Travel Tech ETF is an ETF that tracks a portfolio of companies that are a subset of the global travel and tourism industry.

"The ETFMG Travel Tech ETF is a great example of how an investor can express bullishness in the travel industry in a way that captures new travel habits of younger generations," explained Stephen Gardner, director at ETFMG, in West Palm Beach, Florida. "Millennials and Gen-Z are showing significant preference for spending a larger percentage of their income on travel experiences.

Also, according to Gardner, the use of ETFs is growing at a staggering rate due to the fact that the ETF structure is tax efficient, allowing for intraday tradability, and offering diversification that ranges from broad market exposure to thematic exposures that transcend traditional industry classifications.

A trader works on the trading floor at the New York Stock Exchange in Manhattan, New York City, U.S., December 28, 2021.

 

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