“The price movement in Dow Transports relative to the S&P 500 has officially broken out. This should help this sector outperform. This could also foreshadow a move up to 8500 and higher on the average,” according to See It Market.

The U.S. Global Jets ETF (NYSEArca: JETS), the lone dedicated airline ETF, is another transportation to consider.

SEE MORE: Airline ETF Flying High

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.

Along with lower oil prices, airline stocks look attractive in their own right. For instance, income-oriented investors may notice that airline stocks have seen improved dividend-yield growth. Additionally, the sector shows relatively cheap valuations. Airline stocks have a 7 times price-to-earnings ratio, whereas the broader transportation stocks have a 15 times ratio and the S&P 500 index shows 17 times P/E.

Airlines account for 19.7% of IYT’s weight while freight and logistics and railroad operators combine for over 54% of the ETF’s weight.

For more information on airline ETFs, visit our Airline category.

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