The industrial sector has been solid this year and some of the sector’s recent strength is attributable to transportation stocks and exchange traded funds, such as the iShares Transportation Average ETF (NYSEArca: IYT) and the SPDR S&P Transportation ETF (NYSEArca: XTN).
After climbing 3.5% over the past month, IYT, the largest transportation ETF, is higher by 8.5% this year.
According to the U.S. Bureau of Transportation, the volume of freight transported by road, rail, air, barge and pipelines has been flattening or lower since the end of 2014, Reuters reports. Meanwhile, stubbornly low energy prices may help the transportation industry cut down on costs.
Related: Not-So-Great Expectations for Industrial ETFs
The U.S. Global Jets ETF (NYSEArca: JETS), the lone dedicated airline ETF, is another transportation fund to consider. JETS follows the U.S. Global Jets Index, which uses fundamental screens to select airline companies, with an emphasis on domestic carriers, along with global aircraft manufacturers and airport companies.