The transportation exchange traded fund (ETF) appears to be chugging along, and some are taking the movements as a good sign for the rest of the economy.

Gary Gordon for ETF Expert believes this sector is a key barometer for a stock recovery. Dow theorists use it to decipher the trends of bulls and bears. Transporting goods from one place to another is a fundamental driver for the economy, making Dow Jones Transportation Index Fund (IYT) a key ETF to watch.

Gordon points out that while the media has been focused on the financial and consumer sectors, transportation has quietly been delivering the goods. Year to date, it’s up 7.5%. In the last week, it’s up 9.3%.

When the damage to our economy finally begins to repair itself, the losers of 2007 (financials, consumer discretionary and transportation) will lead in the recovery efforts.

Tags: Financial, Media, Retail, Sector ETFs, Transportation