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Transport ETF (IYT) Hits New 52-Week High

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For investors seeking momentum, iShares Transportation Average ETF (IYT - Free Report) is probably on radar. The fund just hit a 52-week high and is up 82% from its 52-week low price of  $116.61/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

IYT in Focus

The ETF provides exposure to U.S. airlines, railroad and trucking companies. Railroads takes the top spot with 35.2% share in the basket, while air freight and logistics (33.3%), and trucking (18%) round off the next three. The ETF charges 42 basis points in annual fees (see: all the Industrials ETFs here).

Why the Move?

The transport sector has been an area to watch lately given investors’ rush to bargain sectors. The airline, cruise and travel stocks have been beaten down badly amid the pandemic, making the valuations attractive. Additionally, pick-up in economic activities from the pandemic lows has rekindled investors’ optimism in the sector.

More Gains Ahead?

Currently, IYT has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.

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