ETFs to Tap July 4 Spending and Travel Trends

The Fourth of July, a cherished American holiday marked by barbecues, fireworks and patriotic festivities, may see subdued celebrations this year as rising costs due to tariffs, inflation and a higher cost of living deter some consumers. However, travel is expected to surpass last year’s levels.

Consumer Spending

Total consumer spending for the Fourth of July holiday is expected to reach $8.9 billion, down from $9.4 billion in 2024, according to the National Retail Federation. About 86% of Americans plan to celebrate and spend an average of $92.44 per person this Independence Day, up from $90.42 in 2024. 

Cookouts, barbecues and picnics continue to be the most popular activity (61%), followed by fireworks and community celebrations (41%). About 13% will travel and 12% will attend a parade. 

As such, Independence Day marks the beginning of the busiest half of the year for retailers. Many retailers are already flashing exciting deals for the Fourth of July, and massive discounts are in the cards for this day (read: 5 Top-Ranked ETFs of 1H25 Poised to Stay Strong in 2H).

Travel Trends

Travel is in full swing, with the July 4 week expected to be the busiest ever. AAA projects about 72.2 million people to travel 50 miles or more from home on the weekend (June 28-July 6), up 1.7 million from last year. Of them, a record 61.6 million people are expected to hit the road in the Independence Day week, 5.84 million will fly and 4.78 million are expected to travel by other modes of transportation, including buses, cruises and trains. 

Low gas prices are encouraging more drivers to hit the road. The national average price of gasoline is expected to be $3.15 per gallon on the Fourth of July, the cheapest gas price for the holiday since 2021, according to Gas Buddy. However, a round-trip domestic flight is 4% expensive than last year, averaging $810, per AAA. 

Independence Day will be a celebration not just of freedom, but also of economic vitality. Fueled by patriotic spirit, the holiday is expected to boost revenues and profits across multiple sectors. Industries such as travel & leisure, lodging, hospitality, restaurants, and retail are poised to benefit the most. Investors aiming to capitalize on this growth can consider exposure through the following ETFs.

ETFs to Profit

AdvisorShares Restaurant ETF (EATZ)

AdvisorShares Restaurant ETF is an actively managed fund offering focused exposure to the global restaurant and foodservice industry. It holds 26 securities in its basket with a modest concentration on the top firms. AdvisorShares Restaurant ETF has gathered $3.7 million in its asset base. EATZ charges 0.99% as annual fees and trades in an average daily volume of 1,000 shares. 

ETFMG Travel Tech ETF (AWAY)

ETFMG Travel Tech ETF is the first ETF that offers direct access to the technology-focused global travel and tourism industry. It follows the Prime Travel Technology Index, charging investors 75 bps in annual fees. ETFMG Travel Tech ETF holds 30 stocks in its basket, with American firms accounting for 36%, followed by 16.4% share in Australia and 13.8% in China. It has accumulated $47.5 million in its asset base and trades in an average daily volume of 7,000 shares.

VanEck Vectors Retail ETF (RTH)

VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. VanEck Vectors Retail ETF has amassed $246.2 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 5,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Consumer Rebound Boosts Outlook for Discretionary ETFs).

AdvisorShares Hotel ETF (BEDZ)     

AdvisorShares Hotel ETF is actively managed and provides exposure to the global hotel and travel-related services. It holds 30 stocks in its basket, with American firms accounting for about 90% share in the basket. AdvisorShares Hotel ETF charges 99 bps in annual fees and trades in an average daily volume of 1,000 shares. It has amassed $2.7 million in its asset base.
    
U.S. Global Jets ETF (JETS) 

U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. The product holds 50 securities, with American firms accounting for 76% of the assets, followed by Canada, Singapore and Spain. U.S. Global Jets ETF has gathered $819 million in its asset base while seeing a heavy trading volume of nearly 4 million shares a day. It charges investors 60 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.

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Amplify Travel Tech ETF (AWAY): ETF Research Reports

VanEck Retail ETF (RTH): ETF Research Reports

U.S. Global Jets ETF (JETS): ETF Research Reports

AdvisorShares Restaurant ETF (EATZ): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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