If you're interested in broad exposure to the Industrials - Transportation/Shipping segment of the equity market, look no further than the iShares U.S. Transportation ETF (IYT Quick QuoteIYT - Free Report) , a passively managed exchange traded fund launched on October 6, 2003.

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.

Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $602.26 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

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.39%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.07%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, 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) accounts for about 23.11% of total assets, followed by Union Pacific Corp (UNP) and United Airlines Holdings Inc (UAL).

The top 10 holdings account for about 74.7% of total assets under management.

Performance and Risk

So far this year, IYT return is roughly 4.92%, and was up about 7.73% in the last one year (as of 09/10/2025). During this past 52-week period, the fund has traded between $55.22 and $75.4.

The ETF has a beta of 1.22 and standard deviation of 22.17% 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 carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IYT is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.

SPDR S&P Transportation ETF (XTN) tracks S&P Transportation Select Industry Index and the U.S. Global Jets ETF (JETS) tracks U.S. Global Jets Index. SPDR S&P Transportation ETF has $143.30 million in assets, U.S. Global Jets ETF has $817.26 million. XTN has an expense ratio of 0.35%, and JETS charges 0.6%.

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.