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Should You Invest in the iShares U.S. Transportation ETF (IYT)?
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Looking for broad exposure to the Industrials - Transportation/Shipping segment of the equity market? You should consider the iShares U.S. Transportation ETF (IYT - Free Report) , 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.
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 5, placing it in top 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $2.05 billion, making it one of the larger 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 0.94%.
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, Union Pacific (UNP) accounts for about 17.58% of total assets, followed by Uber Technologies (UBER) and Csx (CSX).
The top 10 holdings account for about 73.61% of total assets under management.
Performance and Risk
The ETF return is roughly 8.39% so far this year and it's up approximately 13.03% in the last one year (as of 09/23/2026). In that past 52-week period, it has traded between $68.14 and $90.01.
The ETF has a beta of 1.20 and standard deviation of 21.23% 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 an outstanding 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.
U.S. Global Jets ETF (JETS) tracks U.S. Global Jets Index and the First Trust NASDAQ Transportation ETF (FTXR) tracks Nasdaq US Smart Transportation Index. U.S. Global Jets ETF has $712.48 million in assets, First Trust NASDAQ Transportation ETF has $992.39 million. JETS has an expense ratio of 0.6%, and FTXR 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.
View the Zacks #1 Rank List
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Should You Invest in the iShares U.S. Transportation ETF (IYT)?
Looking for broad exposure to the Industrials - Transportation/Shipping segment of the equity market? You should consider the iShares U.S. Transportation ETF (IYT - Free Report) , 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.
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 5, placing it in top 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $2.05 billion, making it one of the larger 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 0.94%.
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, Union Pacific (UNP) accounts for about 17.58% of total assets, followed by Uber Technologies (UBER) and Csx (CSX).The top 10 holdings account for about 73.61% of total assets under management.
Performance and Risk
The ETF return is roughly 8.39% so far this year and it's up approximately 13.03% in the last one year (as of 09/23/2026). In that past 52-week period, it has traded between $68.14 and $90.01.
The ETF has a beta of 1.20 and standard deviation of 21.23% 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 an outstanding 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.
U.S. Global Jets ETF (JETS) tracks U.S. Global Jets Index and the First Trust NASDAQ Transportation ETF (FTXR) tracks Nasdaq US Smart Transportation Index. U.S. Global Jets ETF has $712.48 million in assets, First Trust NASDAQ Transportation ETF has $992.39 million. JETS has an expense ratio of 0.6%, and FTXR 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.