The ETF and the sector are indicators for the overall health in the U.S. economy. The Dow is the average of the value of one share each of the 30 largest companies in the U.S. It is indicative of the direction that the U.S. economy is leaning.
Other transportation ETFs include the Guggenheim Airline ETF (NYSEArca: FAA) with about $18.1 million in assets. The three year old fund is struggling with the industry. Guggenheim Shipping ETF (NYSEArca: SEA) is a pure play of global seaborn shipping companies. SEA does give a yield of 6.75%.
SPDR S&P Transportation ETF (NYSEArca: XTN) is IYT direct competition. It does tout a lower expense ratio at 0.35%, compared to IYT at 0.47%, however, airline exposure is heavy, with 22.5% allocated to this sub-sector.
Tisha Guerrero contributed to this article.