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A Case Study of The Airline Industry: Frank Holmes, Ceo and Chief Investment Officer U.S. Global Investors
A Case Study of The Airline Industry: Frank Holmes, Ceo and Chief Investment Officer U.S. Global Investors
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OUTLOOK FOR THE U.S. AIRLINES
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OUTLOOK FOR THE U.S. AIRLINES
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U.S. DOMESTIC MARKETS REMAIN STRONG
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INTERNATIONAL MARKETS ARE MIXED
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INTERNATIONAL MARKETS ARE MIXED
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LABOR COSTS ARE GOING UP
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LABOR COSTS ARE GOING UP
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JET FUEL IS STILL A MAJOR COST
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JET FUEL IS STILL A MAJOR COST
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JET FUEL IS STILL A MAJOR COST
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WHAT INVESTORS THINK
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WHAT INVESTORS THINK
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AIRLINE STOCKS TOP THE LIST
OF BARRONS 500 BARGAINS
As-of May 02,
2015
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CONSOLIDATION OF AIRLINES
HAS LED TO BETTER MARGINS
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DOMESTIC AIRLINES ARE FORECAST TO SEE
GREATEST FREE CASH FLOW IN OVER A DECADE
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DIVIDEND YIELD GROWTH RATE HIGHER
FOR AIRLINES THAN TRANSPORTATION
1-Year Dividend
Yield Growth
Bloomberg U.S. Airlines Index 98.64%
Dow Jones Transportation Index 11.30%
As of 6/10/2015
Dividend yield is the dividend per share, divided by the price per share.
Dividend yield growth rate is the annualized percentage rate of growth that a particular stocks dividend yield undergoes over a period of time.
Past performance is not a guarantee of future results.
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U.S. AIRLINE STOCKS ARE RELATIVELY
INEXPENSIVE COMPARED TO BROADER MARKET
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U.S. AIRLINES HAVE BEEN PAYING DOWN DEBT
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ANCILLARY REVENUE HAS TAKEN OFF
UP 12X FROM 2007 TO 2013
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INCREASING SEAT CAPACITY ON PLANES
HAS LOWERED BREAKEVEN COSTS
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BETTER, MORE FUEL-EFFICIENT AIRCRAFT
HAS LOWERED COSTS
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STREAMLINED PROCESSES AND INCREASED
COST DISCIPLINE HAVE DRIVEN PROFITABILITY
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IMPROVED LUGGAGE HANDLING
SAVES AIRLINES $18 BILLION A YEAR
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PILOT SHORTAGE LIKELY TO
MODERATE CAPACITY GROWTH
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EXPANDING GLOBAL MIDDLE CLASS
HAS INCREASED TRAVEL DEMAND
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EMERGING MARKETS PROVIDE
GROWTH OPPORTUNITIES
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INDEX METHODOLOGYSMART BETA DESIGN
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U.S. GLOBAL JETS INDEX
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ELIGIBLE UNIVERSE OF AIRLINES IN INDEX
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INDEX DETAILS
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GO TO USFUNDS.COM
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FOR MORE INFORMATION
www.usglobalindex.com
210.348.2650
@USGlobalETFs
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DISCLOSURES
The US Global JETS Index seeks to provide access to the global airline industry. The index uses various fundamental screens
to determine the most efficient airline companies in the world, and also provides diversification through exposure to global aircraft
manufacturers and airport companies. The index consists of common stocks listed on well-developed exchanges across the
globe. It is not possible to invest directly in an index. 15-305
Cash Flow is a measure of the amount of cash generated by a companys normal business operations. Smart beta refers to
investment strategies that emphasize the use of alternative weighting schemes to traditional market capitalization based indices.
Free Cash Flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or
expand its asset base. Load factor is the ratio of revenue passenger miles and available seat miles for an airline. Diversification
does not protect an investor from market risks and does not assure a profit. Price-Earnings Ratio (P/E Ratio) is determined
by dividing the price of the stock by the company's forecasted earnings per share. There is no guarantee that the issuers of any
securities will declare dividends in the future or that, if declared, will remain at current levels or increase over time. The S&P 500
Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The Bloomberg
United States Airlines Index is a capitalization-weighted index of the leading airline stocks in the United States. The Dow Jones
Transportation Average is a price-weighted average of 20 U.S. transportation stocks.
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