Falling oil prices also bolster the allure of IYT and XTN as airline ETF proxies. IYT, the iShares offering, allocates nearly 16% of its weight to airline stocks. Although XTN is an equal-weight ETF where no stock accounts for more than 3.46% of the fund’s weight, the fund’s airline bench is even deeper than IYT’s. [Cheap Oil Lifts Airline Stocks]

XTN allocates 27.6% of its weight to airlines and seven of the ETF’s top 10 holdings are airline stocks.

“Cheaper oil could be a windfall for transportation, especially airlines, which attribute a large proportion of costs to fuel. Over the last three months, transportation ETFs have seen over $740 million in flows,” adds Mazza.

SPDR S&P Transportation ETF