5 Best Travel ETFs In Canada (2024)

Are you looking to invest in a fund that targets travel but have no idea where to start?

Despite an increase in travel with COVID-19 restrictions relaxing, tourism activity in Canada was still 6.1% lower as of September 2022 versus September 2019.    

Targeting travel and tourism through a travel ETF can pay off handsomely if activity continues to pick up and exceed 2019 levels. It can be difficult to put together a well-diversified basket of travel stocks – something that an ETF can be of immense help with.

I’ll cover the best travel ETFs in Canada below and review some of their specific features.

The Availability of Travel ETFs in Canada

When taking a look at your travel ETF options in Canada, there is only one Canadian-listed ETF available for Canadians to purchase. Travel is a sector that may be targeted by more Canadian ETFs in the future. If you are looking to invest using Canadian dollars, this fund will be your only option.

When it comes to options that are US-listed (and traded in US dollars), there are multiple choices. I will also cover these below.

Keep in mind that while US-listed travel ETFs can be accessed in Canada, they will have to be purchased in US dollars. These ETFs may also expose you to currency fluctuations between the Canadian and US dollars.

Best Travel ETFs in Canada

1. Harvest Travel & Leisure Index ETF

Harvest Portfolio Group Logo
  • Ticker: TRVL.TO
  • Inception Date: January 14, 2021
  • Assets under Management: $158.7 million
  • Management Expense Ratio: 0.62%
  • Management Style: Passive
  • Risk Rating: High
  • Stock Price: $23.85
  • YTD Return: 1.33%

Harvest’s TRVL ETF is the only travel ETF trading on a Canadian exchange that is available to Canadians. If you are looking to invest using Canadian dollars, TRVL will be your only option.

The TRVL ETF invests in large capitalization companies that own or operate travel-related businesses and are listed on a North American exchange. A substantial portion of the ETF will typically be invested in US companies.

Harvest offers both a Canadian dollar version of the ETF (TRVL) as well as a US dollar version (TRVL.U). Keep in mind that the Canadian dollar version of the ETF is unhedged, and currency fluctuations between the Canadian and US dollars will likely impact your total returns.

TRVL is a fairly concentrated ETF, investing in roughly 30 underlying holdings. Approximately 50% of the fund invests in hotels, resorts, and cruise lines.

The ETF is fairly large in terms of assets, especially since it has a very specific mandate. It is fairly expensive regarding its MER, considering that it is a passively-managed ETF.

Harvest rates TRVL as carrying a high level of risk.

If you are looking to invest in a travel ETF, especially if in Canadian dollars, TRVL is an excellent choice.

2. Defiance Hotel Airline and Cruise ETF

defianceetfs Logo
  • Ticker: CRUZ
  • Inception Date: June 2, 2021
  • Assets under Management: $58.2 million
  • Management Expense Ratio: 0.45%
  • Management Style: Passive
  • Risk Rating: N/A (likely high)
  • Stock Price: $21.02
  • YTD Return: -1.38%

CRUZ is another US-listed ETF that focuses on travel offered by Defiance. Since the fund is listed on the New York Stock Exchange, you must purchase it on the US side of your accounts in US dollars.

The ETF invests in global companies that are involved in tourism and travel. Companies included in the ETF must obtain at least 50% of their revenues from business involving:

  • Passenger airline
  • Hotel and resort
  • Cruise

In terms of size, CRUZ is a very small ETF by US standards. Relative to Canadian ETFs, it is still a small fund. The ETF’s management expense ratio is low relative to other peers on my list but is still substantial considering that CRUZ is a passively-managed ETF.

As a global ETF, CRUZ can offer a good level of geographical diversification. Relative to ETFs that only invest in North American companies, CRUZ is likely a superior choice.

3. ETFMG Travel Tech ETF

ETFMG Travel Tech ETF Logo
  • Ticker: AWAY
  • Inception Date: February 12, 2020
  • Assets under Management: $164.4 million
  • Management Expense Ratio: 0.75%
  • Management Style: Passive
  • Risk Rating: N/A (likely high)
  • Stock Price: $18.95
  • YTD Return: 18.21%

ETFMG’s AWAY ETF is another US-listed ETF that tracks technology companies that are involved in revolutionizing the travel and tourism space. AWAY passively tracks the Prime Travel Technology Index NTR.

More specifically, the ETF invests in companies whose businesses involve:

  • Travel bookings and reservations
  • Ride-sharing and hailing
  • Travel price comparisons
  • Travel advice

The companies in the ETF must be involved in the above through either the internet or through internet-connected devices (such as mobile phones). Approximately 60% of the fund is invested in businesses involved with travel bookings and reservations.

If you are looking to invest in travel and have some technology exposure, AWAY is a good option to consider investing in with US dollars.

4. ALPS Global Travel Beneficiaries ETF

ALPS Global Travel Beneficiaries ETF Logo
  • Ticker: JRNY
  • Inception Date: September 8, 2021
  • Assets under Management: $7.6 million
  • Management Expense Ratio: 0.65%
  • Management Style: Passive
  • Risk Rating: N/A (likely high)
  • Stock Price: $24.19
  • YTD Return: 0.02%

ALPS’ JRNY ETF is a US-listed travel ETF that focuses on companies that are engaged in global travel. These companies obtain significant revenues from:

  • Booking and rental agencies
  • Airlines and airport services
  • Global travel beneficiaries
  • Hotels, casinos, and cruise lines

The exchange-traded fund is passively managed and tracks the performance of the S-Network Global Travel Index. It is listed on the New York Stock Exchange.

In terms of assets under management, the ETF is extremely small and was launched fairly recently. With a single-digit AUM, the fund is likely at risk of closing down in the future if it can’t attract enough investment capital to keep it profitable.

With a high management expense ratio, this ETF is fairly pricey for a passive strategy. The fund invests over 60% of its assets currently in US companies.

If the fund continues to grow in the future, it can be a good option to consider as a US-listed travel ETF.

5. AdvisorShares Hotel ETF

AdvisorShares Logo
  • Ticker: BEDZ
  • Inception Date: April 20, 2021
  • Assets under Management: $5.2 million
  • Management Expense Ratio: 0.99%
  • Management Style: Active
  • Risk Rating: N/A (likely high)
  • Stock Price: $28.1557
  • YTD Return: -0.91%

AdvisorShare’s BEDZ ETF is a hotel-focused ETF that should also significantly benefit from an improvement in global travel activity. The ETF is listed in the US on the NYSE and will have to be purchased with US dollars on the US side of your Canadian investment accounts.

BEDZ invests in the shares of companies that obtain at least 50% of their net revenues from the hotel business. The ETF can also invest in travel-related service companies as well as lodging companies.

In terms of geographical allocation, the ETF is over 90% invested in North American companies. These companies are mainly considered small-cap.

Unlike other ETFs on my list, BEDZ is the only actively-managed ETF, meaning that it doesn’t track an index.

The fund is extremely small and is at risk of closing in the future if it can’t attract investment capital. It also comes with a high management expense ratio.

If you are looking for an actively-managed travel ETF, BEDZ is a good option to consider if it can grow in assets going forward.

How To Buy The Best Travel ETFs In Canada

The cheapest way to buy ETFs is from discount brokers. My top choices in Canada are:

Qtrade
Readers Choice
  • 105 commission-free ETFs to buy and sell
  • Excellent customer service
  • Top-notch market research tools
  • Easy-to-use and stable platform 
Wealthsimple Trade
Low Fees
  • Stock and ETF buys and sells have $0 trading fees
  • Desktop and mobile trading
  • Reputable fintech company
  • Fractional shares available
Questrade
Well-Rounded
  • ETF buys have $0 trading fees
  • Excellent market research tools
  • Most types of registered accounts available

To learn more, check out my full breakdown of the best trading platforms in Canada.

Conclusion

With the global economy continuing to re-open, travel and hotel ETFs should have a nice positive tailwind going forward.

Although options are very limited when it comes to investing in Canadian-listed travel ETFs, you can choose from several that are listed in the US (and buy them using US dollars here in Canada.

Be sure to think about your investment preferences and objectives. The travel ETFs listed above can all be considered high-risk and can like face high volatility during difficult market conditions.

If you are considering different ways to get started, be sure to read my guide on how to buy ETFs in Canada.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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