I must say that HanETF has been on something of a roll in recent months with new products. I featured their excellent new sports betting ETF last week in Citywire. This week in Money Week I have also mentioned their new Space ETF with the lovable ticker of YODA.

Now today we have news of yet another new product in early June. It’s a travels sector ETF. Here’s the formal guff on the ETF and the underlying index (from Solactive) :

The Airlines, Hotels and Cruise Lines UCITS ETF ‘TRYP’ seeks to offer exposure to the travel industry as it tracks global airline companies, hotel businesses and cruise line operators. The TRYP travel industry ETF tracks the Solactive Airlines, Hotels, Cruise Lines Index which is focused on companies that derive significant revenue from the travel and tourism sector including companies engaged in the airlines, hotels, and cruise lines business. Please remember that the value of your investment may go down as well as up and past performance is no indication of future performance.”

I actually really quite like this new fund because it is in effect a super beta basket of stocks that have been moving up and down like some global oscillator i.e the poor bedraggled stocks in the index (61) have been knocked about by the Covid pandemic.

They are also likely to continue to be bashed about if we get any new variants – today brought news (to me at least) of yet another variant this time from Nepal. I haven’t done the analysis yet but my guess is that this bunch of super cyclical stocks have a beta of well over 1 which makes this a great leveraged play on consumer confidence. I’ve bought and sold Carnival Corp more times than I can remember and I’ve also caught myself thinking whether Ryanair and Easyjet are worth a punt after the next variant scare story emerges.

This ETF gives you a diversified super cyclical, super beta, way of playing a consumer recovery. Contrary to the cynics, I actually think mass-market airline travel and cruising will come back with AN ABSOLUTE VENGEANCE and all the greens and anti-consumer society skeptics will be holding their heads in collective despair by late 2022.  

In sum, forget about a global travel reset, that idea is for the birds. You simply cannot cage those afflicted with Wanderlust! My finger in the air guess is that this fund probably has another 50% upside at least over the next 18 months.

Fund basics:

Ticker : USD – TRYP


Number of holdings : 61

TER 69 bps

US exposure : 60%

UK 11.34%

Top 10 Holdings Company (%)

Carnival Corp 5.07%

Southwest Airlines Co 4.90%

Royal Caribbean Cruises Ltd 4.80%

Norwegian Cruise Line Holdings Ltd 4.68%

Hilton Worldwide Holdings Inc 4.44%

International Consolidated Airlines Grou 4.44%

Delta Air Lines Inc 4.29%

Huazhu Group Ltd 4.28%

United Airlines Holdings Inc 4.27%

Marriott International Inc/MD 4.12%

Past returns

Year Return Volatility
2017 31.85% 9.79%
2018 -16.62% 14.86%
2019 18.23% 14.03%
2020 -27.605 56.7%
2021 YTD 15.31% 28.51%