The infrastructure asset category is also a good portfolio diversifier as the investment is relatively uncorrelated to the equity markets. In tough and good times, people will still utilize the basic infrastructures of an well-functioning economy, which also makes infrastructure stocks a decent defensive play.

Transportation stocks were expected to benefit from lower oil prices and while that has been the case for airline stocks, other industry groups represented in IYT, including railroads, have lagged broader equity benchmarks, but that could change in the second half.

Although oil prices have recently rebounded, the U.S. Global Jets ETF (NYSEArca: JETS) is sporting a fourth-quarter gain of over 10%.

Airlines are also a significant part of IYT’s lineup. There are encouraging fundamental factors for airlines, including low oil prices. Fuel is the largest input cost for airlines. The improving U.S. economy could encourage more business and leisure travel and airlines are generating impressive amounts of cash.

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.

For more information on Transportation ETFs, visit our Transportation category.