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.
“One week after a signal, the DJI was down 1.39%, on average, and the DJT was down 1.19%. Both indexes were positive just 35% of the time. That’s compared to average anytime one-week gains of 0.14%, with respective win rates of 57% and 53%,” according to Schaeffer’s.
For more information on Transportation ETFs, visit our Transportation category.