Those performances are made even more impressive when noting oil prices have surged over that period. The United States Oil Fund (NYSEArca: USO) is higher by 11.7% over the past month, which likely explains the more than $353 million combined pulled from IYT and XTN since the start of April.
“With regard to the transportation sector, the stronger dollar coincides with lower commodity prices, which should provide an added boost to earnings growth,” said Mazza. [Catalysts for Transportation ETFs]
The past month has also shown XTN and IYT can move higher in tandem with Treasury yields, indicating these ETFs are viable options for rising rates protection.
“Interestingly, the same sectors that do well in a strong dollar environment also do well in a rising rate environment. This is worth watching, as rising rates are potentially right around the corner. When these two environments are combined, they should create attractive tactical opportunities for ETF investors,” said Mazza.
SPDR S&P Transportation ETF
