Category Archives: Airlines

Claymore Airlines ETF (FAA) Launches

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