The iShares Dow Jones Transportation Average ETF (NYSEArca: IYT) is outperforming the market in 2013 and broke out to a new all-time high earlier this year before the better-known Dow Jones Industrial Average.

IYT is up 16% this year compared with a gain of about 10% for SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA).

The Dow Jones Transportation Average ETF performed strongly last week, extending to a new all-time price high, says Investors Intelligence analyst Tarquin Coe. [Dow Industrials, Transports ETFs at Records]

“A healthy bull market needs leadership from this crucial area and that is exactly what the transports are providing,” Coe said in a note Monday.

“The relative chart versus the S&P 500 has broken the counter-trend move of 2011 and 2012, and resuming the 2009/10 trend of outperformance,” he added. “A test of the all-time relative high from 2011 is forecast in the months ahead.” [Transportation ETF Hits All-Time High]

iShares Dow Jones Transportation Average

The opinions and forecasts expressed herein are solely those of John Spence, 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.

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