Friday, April 16, 2010

The Iceland volcano and an ETF for the airlines sell-off


The eruption of a volcano in Iceland caused (and is still causing) major disruptions in air traffic over northern Europe. Many airlines have been affected and the industry is losing hundreds of millions each day.

FAA (click to receive alerts) is an ETF that tracks airlines:


FAA dropped over 3% in the last two days. However, FAA is made mostly of American airlines, which are no that overly by European traffic.

Airline traffic has been going up (reported by GE) and business travel has been coming back lately.

These are the top holdings and percentsges of the ETF:

AMR Corporation Common Stock AMR 16.59
Delta Air Lines Inc. (New) Comm DAL 15.85
Continental Airlines, Inc. Comm CAL 15.17
Southwest Airlines Company Comm LUV 14.64
DEUTSCHE LUFTHANSA-REG LHA 4.63

QUBSF 4.55
UAL Corporation UAUA 4.11

9202 3.91
Alaska Air Group, Inc. Common S ALK 3.87

C6L 3.82


Lufthansa is the only European company in the top holdings.

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