What are airline ETFs?
Airline ETFs aim to give investors a stake in the companies that fly passengers and cargo. Only one of them, the U.S. Global Jets ETF (JETS), owns a basket of stocks, so no company appears across most of the group. JETS comes from US Global Investors. It tracks the U.S. Global Jets Index and held 48 stocks. Its largest holdings were American Airlines (11.31%), United Airlines (11.07%), Southwest Airlines (10.65%) and Delta Air Lines (10.5%), followed by Allegiant Travel (4.26%). Its ten largest holdings made up about 66% of the fund.
The other three products work very differently. The Themes Airlines ETF (AIRL) launched in December 2023. Its stated objective is twice (2x) the daily percentage change of American Airlines Group stock, before fees. Its reported holdings are two Treasury bills. Leveraged funds usually get their stock exposure through derivatives such as swaps and hold short-term government debt alongside them. The 2x target resets each day, so AIRL's returns over longer periods can differ sharply from twice the stock's return.
JETU and JETD come from BMO Financial Group and launched in June 2023. They are exchange-traded notes (ETNs), not funds. An ETN is unsecured debt of the bank that issues it. It owns no assets, and its return is linked to a benchmark. Here the link is 3 times (JETU) or minus 3 times (JETD) the move in airline stocks. If the issuer can't pay, holders can lose money.
Costs vary widely. JETS has an expense ratio (the yearly fee, as a share of the money invested) of 0.60%, and AIRL charges 1.08%. No expense ratio is shown for the ETNs. The money is concentrated. JETS holds about $959 million and AIRL about $39 million, out of roughly $998 million across the two ETFs that report net assets.
The largest airline ETFs, side by side
Swipe the table to see all 2 funds.
| JETS | AIRL | |
|---|---|---|
| Net assets | $959.1M | $39.3M |
| Expense ratio | 0.6% | 1.08% |
| Holdings | 48 | 2 |
| In the 10 largest | 65.96% | 43.05% |
| Biggest holding | American Airlines Group Inc (11.31%) | Treasury Bill (32.99%) |
| Yield | 0.85% | 0% |
| 1-year return | +6.9% | +0.0% |
| 3 years, a year | +22.7% | — |
| 5 years, a year | +4.3% | — |
| Worst drop, past year | -24.1% | -8.1% |
| Launched | 2015 | 2023 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 27, 2026.
Head to head
JETS vs AIRL
JETS holds 48 stocks. Its ten largest make up about 66% of assets, led by American Airlines at 11.31%. AIRL aims for 2x the daily move of American Airlines stock and reports only two Treasury bills as holdings. So their reported overlap is 0%, even though AIRL's target is JETS's largest holding. JETS charges 0.60% a year and AIRL 1.08%. As of October 27, 2026, JETS yielded 0.85% and had returned 6.9% over one year, with a worst drop of 24.1%. AIRL was flat, with a worst drop of 8.1%. JETS may suit long-term holders and AIRL short-term traders.
JETS vs JETU
JETS is a fund that owns 48 stocks and charges 0.60% a year. JETU is a 3x leveraged exchange-traded note from BMO Financial Group. It owns nothing, and its payout depends on the bank's ability to pay. As of October 27, 2026, JETS had returned 6.9% over one year while JETU lost 16.4%. JETU's worst drop that year was 54.7%, against 24.1% for JETS. Its volatility (how widely prices swing) was 73.2%, against 32%. Over three years, JETU returned 20.1%, less than JETS's 22.7%. JETS may suit long-term holders and JETU only short-term traders.
JETU vs JETD
Both are exchange-traded notes from BMO Financial Group, launched in June 2023, with no holdings. JETU aims for three times (3x) the move of an airline benchmark. JETD aims for minus three times, so it gains when airline stocks fall. One might expect one to gain when the other loses. Yet in the year to October 27, 2026, both lost money: JETU fell 16.4% and JETD 41.4%. Their worst drops were 54.7% and 72.8%. Over three years, JETU returned 20.1% while JETD lost 56.9%. Both may suit only traders who watch positions daily.
How much do the largest airline ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
From each fund’s full holdings in its latest N-PORT report.
How have airline ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
How airline ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| JETS | not yet launched | -59.2% | -28.5% |
| AIRL | not yet launched | not yet launched | not yet launched |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives airline ETFs?
Airlines make money by filling seats, so their profits rise and fall with travel demand. That demand follows the economy, consumer spending and business travel. Many of their costs are fixed. Aircraft, debt payments and labor contracts don't shrink when bookings slump, so a modest drop in revenue can erase profits. Jet fuel is one of the biggest expenses, which ties results to oil prices. Heavy borrowing makes interest rates matter too. Shocks such as a pandemic can hit every carrier at once.
That sensitivity shows in JETS's record. In the 2020 COVID crash, JETS fell 59.2%. The S&P 500, an index of large US companies, fell 33.7%. The 2022 bear market was a long slide in stock prices, and JETS fell 28.5% in it, a little more than the S&P 500's 24.5%. JETS launched in 2015, after the 2008 financial crisis, when the S&P 500 fell 55.2%. AIRL, JETU and JETD all launched in 2023, too late for any of these downturns. Their leverage multiplies moves in both directions, and JETD is designed to rise when airline stocks fall.
Airline ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | JETS U.S. Global Jets ETF | 0.6% | $60 a year | $959.1M |
| 2 | AIRL Themes Airlines ETF | 1.08% | $108 a year | $39.3M |
Ordinary funds with at least $10 million in net assets. The median ordinary airline ETF charges 0.6% a year; leveraged and inverse funds usually charge more.
Do airline ETFs pay dividends?
1 of the 2 ordinary airline ETFs with a page here paid distributions over the last 12 months, with a median yield of 0.85%.
| Highest yields | Yield | Net assets |
|---|---|---|
| JETS U.S. Global Jets ETF | 0.85% | $959.1M |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a airline ETF
- Yearly cost: 0.60% versus 1.08%. JETS has the lower expense ratio, at 0.60% a year, and is also by far the largest. AIRL charges 1.08%. A higher fee comes out of returns every year, whatever the stocks do.
- A basket of airlines or one airline. JETS tracks the U.S. Global Jets Index across 48 stocks. Even so, American, United, Southwest and Delta each made up 10.5% to 11.3%. AIRL's stated objective ties it to American Airlines Group alone, at twice its daily move.
- Fund or exchange-traded note. JETS and AIRL are funds that hold assets. JETU and JETD are exchange-traded notes from BMO Financial Group, which are unsecured IOUs that own nothing. If the bank ran into trouble, note holders could lose money even if airline stocks rose.
- Size and track record. JETS launched in April 2015 and holds about $959 million. AIRL launched in December 2023 and holds about $39 million. Smaller, newer funds can have wider bid-ask spreads (the gap between trading prices) and a higher chance of closing.
- Long-term holding or short-term trading. AIRL (2x daily), JETU (3x) and JETD (minus 3x) are built for short-term trading. In the year to October 27, 2026, JETU and JETD both lost money, while unleveraged JETS gained 6.9%.
What are the risks of airline ETFs?
- Four airlines drive much of JETS. American (11.31%), United (11.07%), Southwest (10.65%) and Delta (10.5%) are the largest holdings in JETS. Its ten largest holdings made up about 66% of the fund, so trouble at a few big US carriers would weigh heavily on it.
- Sharp swings even without leverage. JETS's volatility (how widely its price swings) was 32% over the year to October 27, 2026. Its worst drop that year was 24.1%. In the 2020 COVID crash it fell 59.2%, against 33.7% for the S&P 500.
- One stock, doubled, in AIRL. AIRL's stated goal is 2x the daily move of American Airlines stock, so a bad day for that one company is doubled. The leverage resets daily, so results over months can differ widely from twice the stock's return.
- Long and short notes both lost money. JETU (3x) and JETD (minus 3x) both fell in the year to October 27, 2026, by 16.4% and 41.4%. Their worst drops were 54.7% and 72.8%. Resetting leverage in choppy markets wears down value over time.
- ETNs depend on the issuing bank. JETU and JETD are unsecured debt of BMO Financial Group, not funds holding assets. Their value depends on the bank's ability to pay. If it failed, holders could lose money no matter what airline stocks did.
Leveraged and inverse airline ETFs (3x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all airline ETFs, by size
Questions investors ask about airline ETFs
What is the largest airline ETF?
The U.S. Global Jets ETF (JETS) is the largest by far. It has about $959 million in net assets, out of roughly $998 million across the two airline ETFs that report assets. The next, the Themes Airlines ETF (AIRL), has about $39 million. JETS launched in April 2015 and tracks the U.S. Global Jets Index. It holds 48 stocks, led by American, United, Southwest and Delta.
What is the cheapest airline ETF?
JETS has the lowest expense ratio of the airline ETFs, at 0.60% a year, against 1.08% for the Themes Airlines ETF (AIRL). The expense ratio is the yearly fee, taken as a share of the money invested and deducted from the fund's returns. No expense ratio is shown for the JETU and JETD exchange-traded notes, which are leveraged trading products rather than funds.
JETS vs AIRL: what's the difference?
JETS owns a basket of 48 stocks. AIRL's stated objective is twice (2x) the daily move of one stock, American Airlines Group, which is also JETS's largest holding at 11.31%. JETS charges 0.60% a year and AIRL 1.08%. As of October 27, 2026, JETS had returned 6.9% over one year and AIRL was flat. JETS may suit investors wanting a spread of airline stocks for years. AIRL's daily leverage makes it a short-term trading tool.
Do airline ETFs pay dividends?
Of the two airline ETFs, only JETS pays a dividend, and it is small. JETS had a yield of 0.85% as of October 27, 2026, while AIRL's yield was 0%. With a yield that low, nearly all of JETS's return comes from share-price changes. It may not suit investors who rely on their portfolio for regular income in retirement.
Which airline ETF owns Delta and American Airlines?
JETS does. Its largest holdings were American Airlines (11.31%), United Airlines (11.07%), Southwest Airlines (10.65%) and Delta Air Lines (10.5%), followed by Allegiant Travel (4.26%). AIRL is also linked to American Airlines, through a stated goal of 2x the stock's daily move. However, its reported holdings are Treasury bills rather than the shares. The JETU and JETD notes own no stocks at all.
How many airline ETFs are there?
There are four US-listed airline products. Two are ETFs: the U.S. Global Jets ETF (JETS) and the Themes Airlines ETF (AIRL). The other two are exchange-traded notes from BMO Financial Group: the MAX Airlines 3X Leveraged ETNs (JETU) and the MAX Airlines -3X Inverse Leveraged ETNs (JETD). Only JETS holds a basket of stocks without leverage.
Is there an inverse ETF to short airline stocks?
Yes. JETD, BMO Financial Group's MAX Airlines -3X Inverse Leveraged ETN, aims for minus three times the move of an airline benchmark, and JETU aims for three times. Both are trading tools. Leveraged notes usually reset their exposure daily, so over months results can drift far from 3x. In the year to October 27, 2026, JETD fell 41.4% and JETU fell 16.4%, so both lost money. They are notes, not funds, and rely on BMO's ability to pay.
Is there a Vanguard airline ETF?
No. None of the four US-listed airline products comes from Vanguard. US Global Investors runs JETS and Themes ETF runs AIRL. BMO Financial Group issues the JETU and JETD notes. Of the two airline ETFs, JETS has the lower expense ratio, at 0.60% a year, and it is the only one that holds a basket of stocks.
Is there a Vanguard, Fidelity or Schwab airline ETF?
No. None of the three offers a airline ETF. The largest airline ETFs come from US Global Investors (JETS) and Themes ETF (AIRL), and customers of all three firms can buy other companies’ ETFs in their brokerage accounts.
