Travel and consumer ETFs on track for first day in a week after Norwegian Cruise Lines extends voyage suspensions

Exchange-traded funds with exposure to travel and tourism underperformed Wednesday after Norwegian Cruise Line Holdings Inc.
NCLH,
+0.57%

said it wouldn’t be able to resume voyages until at least October, because of the coronavirus pandemic. Norwegian shares were down more than 5% at midday, hitting two consumer-facing funds with the biggest holding of its shares. The First Trust Consumer Discretionary AlphaDex fund
FXD,
+0.15%

lost 0.8%, while the Invesco SP 500 Equal Weight Consumer Discretionary ETF
RCD,
-0.48%

lost 0.7%. Other cruise lines, including Carnival Corporation
CCL,
-1.41%

and Royal Caribbean Cruises Ltd.
RCL,
+2.27%

also slid. Funds with more exposure to the travel industry also took a hit: the US Global Jets ETF
JETS,
-0.44%

fell nearly 2%, in line with airlines like United Airlines Holdings, Inc.
UAL,
+0.22%
,
down 3.5%. The ETFMG Travel Tech ETF
AWAY,
-0.41%

fell 0.9%. All these funds were having their worst trading day in a week.

Leave a Reply

Your email address will not be published. Required fields are marked *

*