Transportation ETFs Rally on Soft Landing Optimism
These ETFs have outperformed the S&P 500 index over the past few weeks.
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Stocks continue to power ahead on rising hopes that the Fed can achieve a soft landing. The central bank staff is no longer projecting a recession in their forecasts. Chair Powell remains optimistic that the Fed can bring down inflation without causing a deep economic downturn.
The economy has remained resilient so far, backed by solid consumer spending, while the unemployment rate remains very low. During the second-quarter earnings calls, many CEOs expressed optimism that a recession may not happen this year, and perhaps not even next year, according to Barron’s.
The transport sector, often seen as a barometer of economic health, comprises mainly companies from the railroads, trucking, and air freight & logistics industries. These ETFs have outperformed the S&P 500 index over the past few weeks.
The iShares U.S. Transportation ETF IYT tracks a modified market-cap-weighted index. United Parcel Service UPS and Uber Technologies UBER are among the top holdings in the fund.
The SPDR S&P Transportation ETF XTN follows a modified equal-weighted strategy. It is the cheapest product in the space.
The First Trust Nasdaq Transportation ETF FTXR tracks a factor-weighted index. Tesla TSLA and FedEx FDX are its top holdings.
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
FedEx Corporation (FDX): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
iShares U.S. Transportation ETF (IYT): ETF Research Reports
SPDR S&P Transportation ETF (XTN): ETF Research Reports
First Trust NASDAQ Transportation ETF (FTXR): ETF Research Reports
Uber Technologies, Inc. (UBER): Free Stock Analysis Report
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