Another Airline ETF, Another Bad Idea

It has been said before and it will certainly be said again that ETF issuers have no shortage of ideas for new funds to bring to market, but as the investing community knows, some ideas are better than others. For some reason, an airline ETF was viewed as a good idea and we have the Guggenheim Airline ETF

to fill that void. Please Santa, bring the ETF Professor another ETF that focuses on an economically sensitive sector beholden to organized labor and oil prices that has no way of growing beyond mergers & acquisitions. Please, I want that ETF!! Direxion, primarily known for leveraged ETFs, is happy to oblige with the introduction of the The Direxion Airline Shares ETF

, which has an expense ratio of 0.55% compared to FAA's 0.65%. Sure, FAA is up more than 33% this year, but this ETF is two-years old and has less than $40 in AUM. That's not unimpressive, that's just a waste of time to keep the ETF on the market. Then again, keep FAA on the market and bring on FLYX. When oil goes to $100 and beyond, traders will have two airline ETFs to short.