The new Claymore Airline ETF (FAA) launched last week that seeks to track the performance of the NYSE Arca Global Airline Index and consists of 25 airline stocks with a cap of at least $100 million. It’s got an easy to remember and clever ticker in FAA. Continental (CAL) is the largest holding at roughly 15%, then Southwest Airlines (LUV) at 11% and AMR at 9.5%
Here are the top 10 holdings as of 1/30/09 according to the Claymore website
The fund really isn’t liquid enough to begin trading at only about 7K shares a day but I’d expect within a month or two, liquidity would improve significantly since there isn’t another way to play the airline sector. When the time comes I can’t imagine why anyone would want to go long the FAA.. the debt laden airlines will not only continue to have problems with a slowing global economy but oil prices won’t stay down for long.
Here’s a chart of the Claymore Airline ETF (FAA).. it’s been a downward spiral since it began trading last Monday