It’s no surprise that there are a number of exchange-traded funds (ETFs) that focus on this corner of the market. Here’s a look at three of the most popular transportation ETFs.
iShares Transportation Average ETF (BATS: IYT)
This ETF tracks the Dow Jones Transportation Average, which is made up of 20 stocks in the transportation sector. The fund is fairly evenly weighted across all of its holdings, with the top 10 accounting for less than 40% of the total.
SPDR S&P Transportation ETF (NYSEARCA: XTN)
This ETF is broader than IYT, with a portfolio of 47 stocks. The top 10 holdings make up less than 35% of the total.
XTN has been a solid performer, with a five-year return of more than 70%.
Vanguard Transportation ETF (NYSEARCA: VIS)
This is the smallest of the three ETFs, with a portfolio of just 17 stocks. The top 10 holdings make up more than 60% of the total.
VTI has been the best performer of the bunch, with a five-year return of more than 90%.
All three of these ETFs offer exposure to the transportation sector, and all have been strong performers in recent years. If you’re looking to add transportation stocks to your portfolio, any of these ETFs would be a good choice.
iShares Global Infrastructure ETF (BMV: IGF)
However, If you are looking for a more broad-based transportation ETF, you may want to consider this option. This ETF tracks an index of global infrastructure stocks, including transportation, energy, and communication infrastructure.
These are just a few of the many transportation stock ETFs that are available. Transportation stocks can be a great way to diversify your portfolio and benefit from the strong growth in the transportation sector.