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 Quick QuoteIYT - Free Report) tracks a modified market-cap-weighted index. United Parcel Service (UPS Quick QuoteUPS - Free Report) and Uber Technologies (UBER Quick QuoteUBER - Free Report) are among the top holdings in the fund.

The SPDR S&P Transportation ETF (XTN Quick QuoteXTN - Free Report) follows a modified equal-weighted strategy. It is the cheapest product in the space.

The First Trust Nasdaq Transportation ETF (FTXR Quick QuoteFTXR - Free Report) tracks a factor-weighted index. Tesla (TSLA Quick QuoteTSLA - Free Report) and FedEx (FDX Quick QuoteFDX - Free Report) are its top holdings.

To learn more, please watch the short video above.