Designed to provide broad exposure to the Industrials - Transportation/Shipping segment of the equity market, the iShares U.S. Transportation ETF (IYT Quick QuoteIYT - Free Report) is a passively managed exchange traded fund launched on October 6, 2003.

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Additionally, sector ETFs offer convenient ways 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 16, placing it in bottom 0%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $665.45 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 0.38%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.06%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many 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 22.69% of total assets, followed by Union Pacific Corp (UNP) and United Parcel Service Inc Class B (UPS).

The top 10 holdings account for about 74.98% of total assets under management.

Performance and Risk

Year-to-date, the iShares U.S. Transportation ETF has gained about 7.5% so far, and is down about 0.2% over the last 12 months (as of 11/10/2025). IYT has traded between $55.22 and $75.4 in this past 52-week period.

The ETF has a beta of 1.25 and standard deviation of 21.33% 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 sufficient 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.

State Street 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. State Street SPDR S&P Transportation ETF has $137.81 million in assets, U.S. Global Jets ETF has $784.20 million. XTN has an expense ratio of 0.35%, and JETS charges 0.6%.

Bottom Line

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