After the closing bell on Jun 24, transport bellwether FedEx (FDX Quick QuoteFDX - Free Report) delivered stellar fourth-quarter fiscal 2021 results. The courier company beat on both earnings and revenues.

Earnings per share came in at $5.01, surpassing the Zacks Consensus Estimate of $5.04 and nearly doubling the year-ago earnings. Further, revenues grew 30% year over year to $22.6 billion and edged past the estimated $21.7 billion. Revenue growth represents the fastest rate since at least 2010, based on Bloomberg data spanning back more than a decade.
Robust performances were driven by persistent strength in e-commerce and a pick-up in business and international shipping.

For fiscal 2022, the company expects adjusted earnings per share in the range of $20.50-$21.50. The mid-point of the guidance is above the Zacks Consensus Estimate of $20.60 (see: all the Industrials ETFs here).

Despite the robust results and an upbeat outlook, FDX shares fell as much as 4% in after-market hours. FedEx currently has a Zacks Rank #2 (Buy) and an impressive VGM Score of A.

ETFs to Watch

This has put ETFs with a higher allocation to FedEx in the spotlight. Below we have highlighted some of the funds:

iShares Dow Jones Transportation Average Fund (IYT Quick QuoteIYT - Free Report)

The ETF tracks the Dow Jones Transportation Average Index, giving investors exposure to a small basket of 20 securities. Of these, FedEx occupies the top position with 12.2% of the assets. Within the transportation sector, railroads, and air freight and logistics take the top two spots with 35.2% and 29.5% share, respectively, while trucking (19.4%) and airlines (10.6%) round off the next two. The fund has accumulated $2 billion in AUM while it sees a good trading volume of around 253,000 shares a day. It charges 42 bps in fees per year and has a Zacks ETF Rank #2 (Buy) (read: 4 ETFs & Stocks to Buy This Summer From Top Sectors).

Emles Home ETF

This fund provides investors access to high quality companies that potentially stand to benefit from the structural shift toward home-based lifestyle by tracking the Emles Home Lifestyle Index. It holds 28 stocks in its basket with FedEx occupying the sixth position at 4.9%. The product has accumulated $6.9 million in its asset since its inception last October and trades in an average daily volume of under 1,000 shares. It charges 49 bps in annual fees.

First Trust Nasdaq Transportation ETF (FTXR Quick QuoteFTXR - Free Report)

This fund offers exposure to the 29 most-liquid U.S. transportation securities based on volatility, value and growth by tracking the Nasdaq US Smart Transportation Index. FedEx holds 3.8% share in the basket. Railroads, trucking, airlines, transport services, and automobiles occupy the top spots in the basket. FTXR amassed $1.2 billion in its asset base and charges 60 bps in annual fees. The average trading volume is moderate at 83,000 shares. The fund has a Zacks ETF Rank #2 (read: 5 ETFs Set to Soar on Strong Memorial Day Travel Rebound).

SPDR S&P Transportation ETF (XTN Quick QuoteXTN - Free Report)  

This fund follows the S&P Transportation Select Industry Index and uses almost an equal-weight methodology for each security. Holding 44 stocks with an AUM of $590.9 million, FedEx accounts for 2.5% share in the basket. The product is heavily exposed to trucking, which represents more than one-third of the portfolio while airlines, and air freight & logistics make up 23.8% and 22.4% share, respectively. The fund charges 35 bps in fees per year from investors and trades in a volume of about 143,000 shares a day, on average. It has a Zacks ETF Rank #2.

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