New Airline ETF One to Watch on Earnings Surprises, Crude Volatility

With four major airlines reporting their Q4 earnings this morning, today seems like a great day to highlight a brand new ETF, the Claymore/NYSE Arca Airline (NYSE: FAA) fund. The ETF saw its first day of trading on Monday, January 26, and has seen increased volume each day since the initial launch.

The fund attempts to replicate the performance of the NYSE Arca Global Airline Index (AXGAL) and consists of 25 airline stocks, each with a market cap of at least $100 million. The ETF will also certainly reflect market action in the oil pits, as gas prices are a huge factor for the airline sector. The funds top 5 holdings, as of yesterday, were Continental Airlines (NYSE: CAL), Southwest Airlines (NYSE: LUV), AMR Corp. (NYSE: AMR), Deutsche Lufthansa AG (OTC: DLAKY), and UAL Corp. (Nasdaq: UAUA).

With shares of the FAA down 0.25% from yesterday's close to around $23.64 most recently, the ETF does not appear to be reflecting a somewhat positive tone in the airline sector today: Continental, Alaska Air (NYSE: ALK) and JetBlue (Nasdaq: JBLU) all reported better-than-expected results. US Airways (NYSE: LCC) also reported today, and despite slightly soft results, the stock is trading higher today.

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