Not all transportation groups are richly valued. Airlines, nearly 18% of IYT’s weight, trade at steep discounts to the broader. However, the U.S. Global Jets ETF (NYSEArca: JETS) has been unresponsive to falling oil prices as the ETF has lost 4.2% over the past three months even as holdings from American (NasdaqGS: AAL) to United Continental (NYSE: UAL) unveil increased shareholder rewards programs, including buybacks.
The ETF’s underlying index shows a forward price-to-earnings ratio of about 9. In contrast, the S&P 500 index is trading near a 18.6 P/E. [Fuel Costs and Transport ETFs]
iShares Transportation Average ETF
