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Should You Invest in the iShares U.S. Transportation ETF (IYT)?
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Launched on 10/06/2003, the iShares U.S. Transportation ETF (IYT - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 12, placing it in bottom 25%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $881.39 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market. IYT seeks to match the performance of the Dow Jones Transportation Average Index before fees and expenses.
The S&P Transportation Select Industry FMC Capped Index (USD) measures the performance of companies from the Industrial Transportation, Airline and General Industrial Services industries of the U.S. equity market.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.22%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 100% of the portfolio.
Looking at individual holdings, Uber Technologies Inc (UBER - Free Report) accounts for about 18.54% of total assets, followed by Union Pacific Corp (UNP - Free Report) and United Parcel Service Inc Class B (UPS - Free Report) .
The top 10 holdings account for about 73.83% of total assets under management.
Performance and Risk
So far this year, IYT return is roughly 1.66%, and is up about 17.88% in the last one year (as of 04/23/2024). During this past 52-week period, the fund has traded between $52.80 and $70.61.
The ETF has a beta of 1.21 and standard deviation of 21.52% for the trailing three-year period, making it a high risk choice in the space. With about 48 holdings, it has more concentrated exposure than peers.
Alternatives
IShares U.S. Transportation ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IYT is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
SPDR S&P Transportation ETF (XTN - Free Report) tracks S&P Transportation Select Industry Index and the U.S. Global Jets ETF (JETS - Free Report) tracks U.S. Global Jets Index. SPDR S&P Transportation ETF has $179.63 million in assets, U.S. Global Jets ETF has $1.33 billion. XTN has an expense ratio of 0.35% and JETS charges 0.60%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the iShares U.S. Transportation ETF (IYT)?
Launched on 10/06/2003, the iShares U.S. Transportation ETF (IYT - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 12, placing it in bottom 25%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $881.39 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market. IYT seeks to match the performance of the Dow Jones Transportation Average Index before fees and expenses.
The S&P Transportation Select Industry FMC Capped Index (USD) measures the performance of companies from the Industrial Transportation, Airline and General Industrial Services industries of the U.S. equity market.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.22%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 100% of the portfolio.
Looking at individual holdings, Uber Technologies Inc (UBER - Free Report) accounts for about 18.54% of total assets, followed by Union Pacific Corp (UNP - Free Report) and United Parcel Service Inc Class B (UPS - Free Report) .
The top 10 holdings account for about 73.83% of total assets under management.
Performance and Risk
So far this year, IYT return is roughly 1.66%, and is up about 17.88% in the last one year (as of 04/23/2024). During this past 52-week period, the fund has traded between $52.80 and $70.61.
The ETF has a beta of 1.21 and standard deviation of 21.52% for the trailing three-year period, making it a high risk choice in the space. With about 48 holdings, it has more concentrated exposure than peers.
Alternatives
IShares U.S. Transportation ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IYT is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
SPDR S&P Transportation ETF (XTN - Free Report) tracks S&P Transportation Select Industry Index and the U.S. Global Jets ETF (JETS - Free Report) tracks U.S. Global Jets Index. SPDR S&P Transportation ETF has $179.63 million in assets, U.S. Global Jets ETF has $1.33 billion. XTN has an expense ratio of 0.35% and JETS charges 0.60%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.