Why Travel ETFs Are Gaining Traction as the Industry Rebounds Strongly
The travel industry is bouncing back despite ongoing economic uncertainty. With global spending in the sector expected to rise by 5% to 6% each year over the next decade, investors are looking for ways to tap into this growth. Travel exchange-traded funds (ETFs) have emerged as a practical option for those seeking exposure without the risks of individual stocks.
The travel sector covers a wide range of businesses, from airlines and hotels to booking platforms and infrastructure providers. While the industry remains vulnerable to economic downturns and external shocks, its long-term outlook appears strong. U.S. leisure travel has already returned to healthy levels, and business travel is slowly recovering. Meanwhile, international demand continues to climb.
Investors can spread their risk by choosing travel ETFs, which bundle together multiple companies in the sector. Four funds often highlighted for 2026 include the U.S. Global Jets ETF, Invesco Leisure and Entertainment ETF, Amplify Travel Tech ETF, and AdvisorShares Hotel ETF. Each offers a different focus, from airlines to technology-driven travel services. Other ETFs provide indirect exposure. The iShares STOXX Europe 600 Travel & Leisure ETF, for example, holds major players like Ryanair (23.07%) and InterContinental Hotels Group (14.49%). The VanEck Morningstar US Wide Moat UCITS ETF includes travel-related firms such as Expedia Group. Even niche funds, like the VanEck Space Innovators UCITS ETF, contain companies like ViaSat, which support travel communication infrastructure.
Travel ETFs could deliver solid returns if consumer travel keeps expanding over the long term. These funds allow investors to benefit from industry growth while reducing risk through diversification. For those comfortable with moderate volatility, they remain a straightforward way to gain exposure to a recovering sector.
