What ETFs Invest in Dow Jones Transportation Average Index

If you're looking to invest in the transportation sector, there are several ETFs that track the Dow Jones Transportation Average Index.

The Dow Jones Transportation Average Index is a price-weighted index that tracks the performance of 20 transportation companies in the US.

These companies are involved in the transportation of goods and people, and their performance can be a good indicator of the overall health of the economy.

Some of the companies included in the index are airlines, trucking companies, and shipping companies, among others.

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The iShares Transportation Average ETF (IYT) is the largest transportation ETF on the market, with an expense ratio of 0.43%. It tracks the Dow Jones Transportation Average and holds 20 stocks, including familiar names like Union Pacific, FedEx, and UPS.

The fund is heavy on these economic bellwethers, with FedEx being a key player in the rapidly growing e-commerce arena. Its freight-forwarding operation is also a long-term catalyst, creating a network effect moat that makes the system more valuable to shippers.

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Here are some key transportation ETFs to consider for your investment portfolio:

Note that each of these ETFs offers a unique investment concept, from the broad exposure of IYT to the specialized focus of SEA.

The transportation industry is a massive $6 trillion sector that's crucial to the economy. It's a natural fit for an exchange-traded fund (ETF) because it's so broad, allowing investors to make one purchase and acquire shares in an entire range of companies operating in a single sector.

Transportation ETFs offer diverse exposure, minimizing risk and simplifying investment. They provide a convenient way to invest in the sector without having to buy a basket of individual companies.

The iShares Transportation Average ETF (IYT) is the largest transportation ETF on the market, tracking the Dow Jones Transportation Average. It holds just 20 stocks and is heavy on familiar names such as Union Pacific, FedEx, and UPS.

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The Invesco Shipping ETF (SEA) tracks the Dow Jones Global Shipping Index and offers a more niche investment concept, focusing on the rates shipping companies charge to move commodities around the world. This investment is not for conservative investors, as it's volatile compared to traditional transportation ETFs.

Here are some key points to consider when investing in transportation ETFs:

Transportation ETFs can provide a convenient and diversified way to invest in the sector, but it's essential to carefully consider the risks and expenses involved.

The Direxion Daily Transportation Bull 3X Shares ETF is an interesting option for those looking to take advantage of the Dow Jones Transportation Average Index. This ETF uses leverage to try to provide three times the returns of the index.

The ETF has a relatively small asset base of about $20.9 million, which is a fraction of the total assets in the index. The top five holdings in the ETF as of September 3rd, 2024, are Uber, Union Pacific, United Parcel Service, FedEx, and CSX.

Here are the top five holdings in the ETF:

The ETF has a significant allocation to ground transportation companies, with 62.8% of its assets invested in this sector.

The Cushing Transportation & MLP ETF (XLTY) is a unique take on traditional transportation ETFs. It combines members of the Dow Jones Transportation Average with master limited partnerships (MLPs) from the Cushing MLP Index.

The fund re-weights the transportation industry group by dividend yield, subject to a cap of 6% weight per holding. This approach allows it to offer an attractive dividend yield relative to other transportation ETFs.

XLTY caps MLP exposure at 25% to avoid taxation issues related to the asset class. This limit is in place to keep the fund's tax efficiency intact.

The ETF has a relatively low expense ratio of 0.65%. This makes it a cost-effective option for investors looking to gain exposure to the transportation sector.

Here are the key statistics of the Cushing Transportation & MLP ETF (XLTY):

Overall, the Cushing Transportation & MLP ETF (XLTY) offers a distinctive blend of transportation and MLP investments, making it an attractive option for investors seeking a unique exposure to the sector.

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If you're looking to invest in shipping stocks, you might want to consider the companies mentioned in the article "6 Best Shipping Stocks in 2025". These companies are likely to be involved in global trade.

The article highlights the importance of massive shipping vessels in facilitating global trade. Shipping stocks are a key component of the Dow Jones Transportation Average Index.

The Dow Jones Transportation Average Index is a market index that includes companies involved in transportation and logistics. It's a good indicator of the overall health of the transportation sector.

Companies like those mentioned in "6 Best Shipping Stocks in 2025" are likely to be included in the Dow Jones Transportation Average Index. This is because they play a crucial role in the global transportation of goods.

Investing in shipping stocks can be a good way to diversify your portfolio and potentially earn returns. However, it's essential to do your research and consider the risks involved.

The article "6 Best Shipping Stocks in 2025" suggests that these companies are a good investment opportunity. However, it's crucial to evaluate their performance and potential for growth before making a decision.

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If you're considering investing in a Dow Jones Transportation Average Index ETF, you'll want to think about the benefits of targeted access to domestic transportation stocks.

The Dow Jones Transportation Average Index is a well-established benchmark that tracks the performance of US transportation stocks.

Investing in this index can be a great way to express a sector view, which means you're making a statement about your expectations for the transportation industry.

You can use an ETF that tracks this index to gain exposure to a diverse range of transportation stocks, including airlines, trucking companies, and railroads.

This can be a more efficient way to invest in the sector compared to buying individual stocks, as it allows you to spread your risk across multiple companies.

Investing in a transportation ETF can be a smart move, especially if you're looking to diversify your portfolio. The iShares Transportation Average ETF (IYT) tracks the Dow Jones Transportation Average and holds just 20 stocks, making it a convenient way to gain exposure to the sector.

One of the top holdings in IYT is FedEx, which is well-positioned to benefit from the growth of e-commerce. In fact, FedEx's freight-forwarding operation is expected to be a long-term catalyst for the company.

However, the near-term outlook for IYT is uncertain due to tariff talk affecting its railroad components. For example, the fund slumped 3.66% last week.

If you're considering adding transportation ETFs to your portfolio, keep in mind that the sector can be cyclical, with individual companies experiencing choppy performances. This is why ETF investing can be a good option, as it allows you to gain exposure to the broader trends without the risks of trying to pick individual winners.