Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Vacation ETF in Focus as TSA Expects Busy Spring Break Season

BY | ETF Database
04/02/2025 | 18 VIEWS
The Transportation Security Administration is expecting this year to be a busy spring break season. That opens potential plays in vacation-focused stocks and ETFs.As reported by CBS News, TSA is expecting travel to increase by 5% from last year. From an airline-specific perspective, United Airlines is expecting this year’s spring break numbers to be record-breaking. The forecast comes amid broad market uncertainty with inflation still relatively high, while geopolitical forces like tariffs are also adding to investor worry. Heading into the new year, uncertainty surrounding a new presidential administration could have been a potential roadblock for discretionary demand like vacation and travel spending. Nonetheless, the overall air travel volume appears to be picking up. The TSA also reported that 2024’s holiday season was the busiest on record. “Demand for discretionary services came off the boil last month, perhaps reflecting rising anxiety among households about the new administration’s policies,” according to Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics. Another potential catalyst for an uptick in vacation and travel stocks is heavier business travel, which has been picking up after the pandemic. It appears more business transactions and meetings are starting to take place face-to-face as opposed to online. As reported by Marketplace, airlines also saw heavy business travel last year, which could spill over into this year. “What we’ve seen is just a slow, "steady uptick in corporate travel activity,":https://www.marketplace.org/2024/10/11/corporate-business-travel-spending-is-set-to-exceed-pre-pandemic-levels/ which is to say, bookings through recognized corporate travel agencies,” said airline industry analyst Robert Mann.A Potential Travel PlayIf the holiday travel trend translates into increased revenue and profits for vacation/travel stocks, this could be a potential setup for the Direxion Daily Travel & Vacation Bull 2X Shares (OOTO B-). The fund focuses on returning 200% of the BlueStar Travel and Vacation Index. The index exposes traders to global commercial airlines, hotels, resorts, resort casinos, travel agencies, online travel booking sites, hotel REITs, cruise lines, theme parks, and ski resorts. Given this, its top three holdings include names like Walt Disney, Marriott, and Hilton (as of 12/31/24), which could see increased business activity during spring break. With the fund’s use of double leverage, traders can look to amplify their returns with OOTO, especially if the fund maintains its recent upward trajectory. However, that amplification also applies to losses, so only seasoned investors should use these tactical strategies.For more news, information, and analysis, visit the Leveraged & Inverse Channel.

More Commentary

Calamos Unveils Pair of New Structured Protection ETFs
BY | ETF Database
11:57 am ET 04/03/25 | 3 VIEWS
Gold's Rally Continues to Tee Up Opportunities for Miners
BY | ETF Database
04/02/2025 | 68 VIEWS
Top Performing Leveraged/Inverse ETFs: 03/30/2025
BY | ETF Database
04/02/2025 | 18 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.