The limited investor interest surrounding airline ETFs has recently led one fund sponsor to shutter a product. Citing declining interest in their fund, during the middle of last week, Direxion announced that it was closing down its Direxion Airline Shares ETF (FLYX) after less than a year of trading. FLYX was the firm's first venture into the realm of non-leveraged and non-inverse ETF products but failed to generate interest. As of Sept. 27, the fund had less than $3 million in assets.
FLYX's liquidation process is scheduled to take place between Oct. 10 and 17.
News that Boeing's 787 Dreamliner is at last being delivered could help to provide the aerospace and airline industries with some lift in the near term. While both will likely be exciting to watch, I encourage investors to do their homework before taking any action. Aerospace will be the better bet here.
Written by Don Dion in Williamstown, Mass.