Transportation ETFs are Delivering, Especially Airline ETF

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.

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.

“In about a month’s time, the DJT was able to climb roughly 15%, setting a new all-time high in the process. Since its December peak, however, the index has basically moved sideways for 7 months. That is not unusual, nor particularly unhealthy, for an index following a test of its former highs, however. The consolidation allows it go catch its breath and build up fuel to allow for a sustainable breakout to new highs, if and when it does come,” reports ETF Daily News.

IYT resides just pennies below a new 52-week high.