U.S. Global Investors Q2 2025: Unpacking Contradictions in Performance, ETF Impacts, and Strategic Shifts

These are the key contradictions discussed in U.S. Global Investors' latest 2025Q2 earnings call, specifically including: Performance relative to the Russell Microcap Index, the impact of the JETS ETF on financials, Smart Beta 2.0 thematic products, and ETF Product Focus:



Company Performance and Asset Management:
- U.S. Global Investors reported average assets under management of $1.5 billion for the quarter, with operating revenues of $2.2 million, resulting in a net loss of $86,000.
- The decrease in assets under management, particularly in their JETS ETF, was primarily responsible for the financial results.
- The company attributed the challenging macroeconomic conditions and negative analyst sentiment to the decline in assets.

Dividend and Share Buyback Strategy:
- U.S. Global Investors has been actively re-purchasing shares, with 236,731 Class A shares bought back in the quarter using approximately $587,000 in cash.
- The company's strategy involves buying back stock on flat or down days, enhancing shareholder value through increased dividends and buybacks.
- This is part of their disciplined approach to manage cash for future growth opportunities and market corrections.

ETF Launches and Performance:
- The company launched the U.S. Global Technology and Aerospace & Defense ETF (WAR) in December, focusing on semiconductors, data centers, cybersecurity, and aerospace.
- Their flagship product, the JETS ETF, continues to outperform the market, with significant passenger growth in the airline sector.
- The strong performance is attributed to the ETF's smart beta 2.0 strategy and the favorable impact of falling oil prices on the airline industry.

Cybersecurity and Defense Spending:
- U.S. Global Investors highlighted significant global defense spending, reaching $2.4 trillion, with areas like semiconductors, data centers, and cybersecurity seeing increased defense investment.
- The company anticipates growth in military spending and AI applications in defense, driven by geopolitical concerns and investments in aerospace and defense technologies.
- The launch of ETF WAR is positioned to capitalize on these trends, offering investors exposure to the growth in defense and technology sectors.