As Transportation Reinvents Itself, Ride Along with the TPOR ETF

Electric vehicles are just the tip of the iceberg for transportation. As artificial intelligence and robotics enter the fray, myriad innovations will help drive the Direxion Daily Transportation Bull 3X Shares (TPOR).

“As technology continues to develop, new trends emerge,” a Global Trade article noted. “While driving AI is still not advanced enough to give us fully automated vehicles, there are other trends that stand to change the transportation industry as we know it. So, to get a better understanding of where the industry is now, let’s take a look at some of the more notable trends. Here are emerging transportation innovations to watch out for in 2021.”

The article mentioned a number of innovations that are in the works or already being implemented by the transportation industry. Among those include V2X communication, touchless activation, automated logistics, and alternate forms of fuel.

As noted, it’s just the tip of the iceberg of what’s to come in a rapidly evolving transportation industry.

“While the emerging transportation innovations show much promise, they are only a glimpse of what’s to come,” the Global Trade article said. “Before long, we won’t be surprised that there are individual vehicles and entire fleets of fully automated transports. We will probably first see these automated vehicles in trains and ships, as there are fewer variables to keep track of there.”

“But, as the self-driving AI progresses, we are bound to see self-driving trucks, cars, and planes,” the article added. “Keep in mind that it’s in AI’s nature to develop exponentially. So, once it starts advancing, it is only going to speed up over time. Therefore, if we get rudimental self-driving AI within ten years, fully automated vehicles two years after that shouldn’t be surprising.”

Levering Up on the Change

In the meantime, short-term traders can capitalize on the industry changes with TPOR. With the triple leverage the fund has combined with a transportation industry that’s recovering from the pandemic, it’s easy to see why the ETF is up almost 80% this year.

Summarily, TPOR seeks daily investment results that are equal to 300 percent of the daily performance of the Dow Jones Transportation Average. The index measures the performance of large, well-known companies within the transportation industry.

“TPOR is intended to be used as a short-term trading tool by sophisticated investors,” an ETF Database analysis added. “TPOR, like most leveraged products, rebalances at the end of every trading day.”

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