US Global Investors Shines in 2024: JETS ETF Soars Amid Travel Boom; Gold, Shipping Funds Add to Gains

U.S. Global Investors, Inc. (Nasdaq: GROW) has reported a stellar year in 2024, with its smart beta 2.0 ETFs delivering impressive returns across various sectors. The company's thematic investment strategy, focused on high-quality stock selection and robust portfolio construction, has proven effective in capturing sector-specific growth opportunities while managing risk.

The standout performer among U.S. Global Investors' ETFs was the U.S. Global Jets ETF (NYSE: JETS), which soared by 33.21% in 2024. This remarkable performance was driven by several key factors, including record-high travel demand, strategic capacity management, and lower fuel costs. The Transportation Security Administration (TSA) screened over 900 million passengers in 2024, a 5% increase from 2023, reflecting the strong recovery in the airline industry. Effective capacity management by airlines ensured that they could meet the increased demand without overwhelming their systems, leading to improved profitability. Additionally, declining global oil prices in 2024 reduced operating costs for airlines, further boosting their profitability and contributing to JETS' impressive return.

Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors, highlighted the remarkable agility of the airline industry in 2024, stating, "The airlines industry demonstrated remarkable agility in 2024. Strong travel demand, strategic capacity management, and lower fuel costs have helped position airlines for sustained success."

The U.S. Global GO GOLD and Precious Metal Miners ETF (NYSE: GOAU) also performed exceptionally well in 2024, reporting a total return of 13.80%. This strong performance was closely aligned with the historic rally in gold prices, which reached an all-time high of $2,787 per ounce in October 2024. The ETF benefited from this trend, as it is designed to track the performance of gold and precious metal miners. The surge in gold prices was supported by strong central bank purchases, with central banks adding 186 metric tons of gold in Q3 alone. The GOAU ETF's positive performance in 2024 reflects the effectiveness of its strategy in capturing the gains from the gold market's historic rally.

The U.S. Global Sea to Sky Cargo ETF (NYSE: SEA) maintained positive performance in 2024, despite facing significant industry challenges. The cargo shipping industry faced "a number of challenges in 2024, from geopolitical instability to labor disputes," according to Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors. Despite these headwinds, the SEA ETF ended the year in positive territory, with a total return of 2.23% including a $2.10-per-share dividend. This resilience demonstrates the adaptability of the cargo shipping sector and the effectiveness of the company's quantitative strategy in managing risk and capturing growth opportunities.

U.S. Global Investors also launched its first actively managed ETF, the U.S. Global Technology and Aerospace & Defense ETF (NYSE: WAR), on December 30, 2024. This strategic move positions the company to potentially benefit from increasing global defense spending and technological advancement trends in the rapidly evolving aerospace and defense sectors.

The outstanding performance of U.S. Global Investors' ETF portfolio in 2024 reveals compelling sector-specific opportunities. The JETS ETF's +33.21% return significantly outperformed the broader market, driven by record-breaking passenger volumes and declining fuel costs. The GOAU ETF's +13.80% return capitalizes on gold's historic rally, supported by substantial central bank purchases. While the SEA ETF's +2.23% return appears modest, its ability to maintain positive performance despite significant industry headwinds demonstrates resilience in the cargo shipping sector. The strategic timing of launching the WAR ETF at year-end positions it to potentially benefit from increasing global defense spending and technological advancement trends.

In conclusion, U.S. Global Investors' successful execution of its thematic investment strategy across multiple sectors in 2024 validates the company's quantitative methodology and suggests potential for continued success in identifying and capitalizing on thematic investment opportunities. The outperformance of JETS ETF against major indices, the $2.10-per-share dividend from SEA ETF, and the strategic launch of WAR ETF as an actively managed product further underscore the company's commitment to capturing sector-specific growth opportunities while managing risk through quantitative selection criteria.