Exploring Shipping ETFs for Beginners

So you're interested in exploring shipping ETFs? Shipping ETFs can be a great way to diversify your portfolio and tap into the growing global trade industry.

Shipping ETFs track the performance of shipping companies, which can be volatile but also potentially lucrative. The shipping industry is a significant contributor to global trade, with over 90% of the world's goods being transported by sea.

Investing in shipping ETFs can provide exposure to a wide range of shipping companies and industries, including container shipping, bulk shipping, and tanker shipping. The iShares Ship Finance ETF (ISSL) is an example of a shipping ETF that focuses on the ship finance industry.

Shipping ETFs can be a relatively low-cost way to invest in the shipping industry, with many ETFs charging lower fees than actively managed funds. The SPDR S&P Shipping ETF (SEA) is an example of a low-cost shipping ETF.

The SPDR S&P Transportation ETF is a great option for investors looking to diversify their portfolio with a broad view of the transportation industry.

This ETF tracks the S&P Transportation Select Industry Index and has a relatively low expense ratio of 0.35%. It had $204.4 million in assets under management as of September 4, 2024.

The top five holdings in the ETF as of September were C.H. Robinson Worldwide, Ryder System, FedEx, Norfolk Southern, and Matson.

Here are the top five holdings in the SPDR S&P Transportation ETF as of September:

The iShares US Transportation ETF (IYT) is a popular choice for investors looking to tap into the transportation sector. It had $611.2 million in net assets as of Sept. 3, 2024.

The ETF tracks a broad target, providing exposure to U.S. airline, railroad, and trucking companies, as well as technology-infused transportation disruptors. This makes it a great option for those looking to diversify their portfolio.

As of Sept. 3, 2024, the ETF had 50 companies in its portfolio. Its top five holdings included Union Pacific, Uber Technologies, United Parcel Service, FedEx, and Norfolk Southern.

Railroads make up a significant portion of the fund, accounting for 28.4% of the total. Air freight and logistics companies comprised 20.3%, passenger ground transportation made up 19.3%, and trucking 16.9%.

Here are the top five holdings of the iShares US Transportation ETF, along with their respective percentages:

The iShares US Transportation ETF has an expense ratio of 0.39%, which is relatively low compared to other ETFs. This means investors can expect to pay less in fees and enjoy more of their returns.

The SPDR S&P Transportation ETF is a great option for those looking to invest in the transportation industry. It's a broad-based ETF that tracks the S&P Transportation Select Industry Index.

The ETF has $204.4 million in assets under management as of September 4, 2024, and holds 52 companies in its portfolio. It's a relatively small ETF, but it provides a good starting point for those looking to gain exposure to the transportation sector.

Its top five holdings as of September were C.H. Robinson Worldwide, Ryder System, FedEx, Norfolk Southern, and Matson. These companies make up a significant portion of the ETF's portfolio.

Here are the top five holdings of the SPDR S&P Transportation ETF as of September:

The ETF's holdings are diversified across different transportation sub-sectors, including truckers (31.9%), airlines (22.8%), air freight (19.5%), and railroads (10.7%).

The First Trust Nasdaq Transportation ETF (FTXR) is a solid option for investors looking to diversify their portfolios with a broad view of transportation. It tracks the Nasdaq U.S. Smart Transportation Index, which includes 41 companies in its portfolio.

The ETF's top five holdings are General Motors, FedEx, Tesla, Ford Motor, and United Parcel Service. Auto companies make up a significant 25.0% of the ETF's assets.

One of the key benefits of FTXR is its low expense ratio of 0.60%. This means that investors can expect to pay less in fees compared to other ETFs.

Here are some key statistics about the First Trust Nasdaq Transportation ETF:

Overall, the First Trust Nasdaq Transportation ETF provides exposure to a range of transportation companies, with a focus on growth and value stocks.

Shipping ETFs offer a way to invest in the global shipping industry, which is a vital part of international trade.

The Baltic Dry Index (BDI) is a key indicator of shipping demand, and it has been used to track the performance of shipping ETFs.

The iShares Transportation Average ETF tracks the Dow Jones Transportation Average, which has historically been correlated with the Baltic Dry Index.

Shipping ETFs can be a good way to diversify a portfolio, but they can also be volatile due to factors like changes in global trade policies and natural disasters.

The Global X Shipping ETF holds a portfolio of shipping companies, including containerships, bulk carriers, and tankers.

Shipping companies like Maersk and Cosco are major players in the industry, and their stocks are often included in shipping ETFs.

The VanEck Vectors Shipping ETF tracks a benchmark of shipping companies, including those that specialize in dry bulk, containers, and tankers.

Shipping ETFs have gained popularity in recent years, but it's essential to understand the market trends before investing. The global shipping industry is expected to grow at a CAGR of 4.5% from 2020 to 2025.

Shipping ETFs track the performance of shipping companies, such as container shipping, bulk shipping, and tanker shipping. These companies operate in a volatile market, with factors like fuel prices, trade policies, and global economic conditions affecting their profitability.

The transportation industry is a massive sector that's crucial to the economy. It's valued at $6 trillion globally.

Transportation stocks are diverse, making them a natural fit for an exchange-traded fund, or ETF. This allows investors to make one purchase and acquire shares in an entire range of companies operating in the sector.

Investing in transportation ETFs can be a great way to minimize risk and simplify investment. By diversifying your portfolio, you can gain exposure to every corner of the transportation world.

The government and private sector have pledged to invest massive sums in new transportation projects to ease gridlock. This creates potential opportunities for investors.

Investors can gain exposure to the transportation industry without having to buy a basket of individual companies. Here are some of the top ETFs for investors looking for exposure to the transportation industry:

The transportation sector has underperformed the broader market over the past year, with the benchmark S&P 500 Transportation (Industry Group) Index delivering a one-year trailing total return of -4.2% compared to -11.0% for the S&P 500, as of Sept. 1, 2022.

The top three transportation exchange-traded funds (ETFs) with the best one-year trailing total returns are IYT, FTXR, and XTN. These ETFs have outperformed the broader market, despite the sector's overall underperformance.

The top holdings of these ETFs are United Parcel Service Inc., C.H. Robinson Worldwide Inc., and Atlas Air Worldwide Holdings Inc., respectively. These companies are key players in the transportation industry and have contributed to the ETFs' strong performance.

Here are the top three transportation ETFs as measured by one-year trailing total returns:

If you're interested in investing in shipping ETFs, there are several specific stocks to consider. One option is the International Seaways (INSW) stock, which has a strong track record of growth and a solid dividend yield.

The Teekay Tankers (TNK) stock is another popular choice, with a focus on the global tanker market and a history of delivering strong returns.

The Navios Maritime Acquisition (NNA) stock is a smaller company with a more specialized focus, but it has still managed to deliver impressive growth and returns for investors.

Transportation ETFs can be a great way to gain exposure to the broader trends in the sector without the risks of individual company performance.

The world needs well-functioning transportation systems, and technology has the potential to reinvent large portions of the transportation economy over time.

Individual companies in the transportation sector, such as airlines and truckers, tend to be cyclical in nature, meaning their stocks ebb and flow with the economy.

This can make it challenging to pick long-term winners, but a transportation ETF gives you a chance to ride the trend while minimizing risk.

Subsectors like airlines and truckers are ripe for ETF investing because they offer a way to capture the broader trend without the risks of individual company performance.

As we explore the world of stocks, it's essential to consider the companies that drive global trade. Industrial companies span several subsectors of the economy they support.

Investing in shipping stocks can be a lucrative option, with companies like those mentioned in the "6 Best Shipping Stocks in 2025" article. These companies are crucial for global trade.

Industrial companies play a vital role in the economy, and understanding their subsectors can help inform investment decisions.

The Nasdaq FTXR is an ETF that tracks the Nasdaq U.S. Smart Transportation Index, an index composed of securities of companies within the U.S. transportation industry.

This ETF provides exposure to a range of transportation companies, with trucking companies receiving the largest allocation, followed by railroads, auto parts makers, and airlines.

One of the key features of FTXR is its multi-factor-weighted fund, which invests in a mix of growth and value stocks of various market caps.

The top three holdings of FTXR include C.H. Robinson Worldwide Inc. (CHRW), a freight transportation and services company, and PACCAR Inc. (PCAR), a manufacturer and distributor of commercial trucks and other vehicles.

FTXR has an expense ratio of 0.60%, which is relatively low compared to other ETFs.

Here's a brief overview of FTXR's key statistics:

FTXR has been in existence since its inception date of Sept. 20, 2016, and is issued by First Trust.