The iShares Dow Jones Transportation Index (IYT) is a 23-stock exchange traded fund (ETF) that includes railroad, trucking, shipping, and airline companies.  Trang Ho for Investor’s Business Daily reports analysts were already bullish on Burlington Northern Santa Fe (BNI) before Warren Buffet’s Berkshire Hathaway recently bought 10.9% of the company.

BNI’s business with coal, agriculture and intermodal are higher than other rail companies and these areas should perform well if there is an economic downturn.  BNI began a share-repurchase program and other railroad companies in the ETF are following suit. Railroad companies, BNI, CSX, Union Pacific (UNP) and Norfolk Southern (NSC) are among the top ten holdings in IYT, which is up 11.6% year-to-date.


The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.