Europe’s first airlines, hotels and cruise lines ETF to launch on HANetf platform
The launch of Europe’s first Airlines, Hotels and Cruise Lines ETF on the HANetf platform will deliver exposure to the travel industry as it tracks global airline companies, hotel businesses and cruise line operators. The Airlines, Hotels and Cruise Lines UCITS ETF (LSE ticker: TRYP) ‘TRYP’ will list on the London Stock Exchange in June 2021 and will be passported for sale across Europe.
Total global spending on leisure travel fell 50 per cent, from USD4.692 trillion in 2019 to USD2.373 trillion in 2020. Expenditures on business travel took an even bigger hit, falling 52 per cent from USD1.445 trillion in 2019 to 694 billion in 2020.
With the rollout of Covid-19 vaccines and the gradual relaxation of restrictions on public movements, global spending on leisure travel is expected to increase by 45 per cent in 2021, to USD3.45 trillion. Business travel expenditures are projected to increase by 21 per cent, to USD842 billion in 2021.
Analysts expect that a re-bound in the travel sector could be driven by the speed and extend of a Covid-19 vaccine roll out, pent up demand resulting from trips not taken during the pandemic, growth of the disposable income and savings as well as the size and pace of a global economic recovery. However, these increases still leave leisure and business travel spending far below their 2019 peak and it is likely to take several more years to regain all of the lost ground.
The TRYP travel industry ETF will track the Solactive Airlines, Hotels, Cruise Lines Index. The index- back-tested performance shows it achieved 62.07 per cent net total returns in the past year.
The ETF will have a Total Expense Ratio of 69bps.
Hector McNeil co-Founder and co-CEO at HANetf, co-founder of the Airlines, Hotels and Cruise Lines UCITS ETF, says: “The travel industry has been decimated after the Pandemic but we are optimistic about a rebound in the travel industry in the short term due to the speed and extent of a Covid-19 vaccine roll out, business travel restarting and pent up demand resulting from trips not taken during the pandemic. Over the longer term, the growth of disposable income and savings as well as the size and pace of a global economic recovery will be key factors although it may take a few years to regain the lost ground.
"We launched the Airlines, Hotels and Cruise Lines UCITS ETF for investors who want a way to trade a recovery of the travel industry in a single product and we are delighted to be able to launch TRYP on the London Stock Exchange later this month.
“Launching the Airlines, Hotels and Cruise Lines ETF expands our range of innovative ETFs and ETCs and is another European first which we are delighted to bring to market with. We are very proud of the many firsts we have brought to the European ETF market including Europe’s first Space ETF and Europe’s first pure-play solar energy ETF.”