The equal-weight XTN features exposure to Air Freight & Logistics, Airlines, Airport Services, Highways & Rail Tracks, Marine, Marine Ports & Services, Railroads, and Trucking companies. That ETF holds 42 stocks, none of which exceed weights of 2.75%. Trucking and airline stocks combine for 57% of XTN’s weight.
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.
For more information on Transportation ETFs, visit our Transportation category.