ETF Research and Analysis

by Robert Goldsborough
IShares Transportation Average ETF IYT offers concentrated exposure to the U.S. transportation industry. This exchange-traded fund's narrow focus makes it best suited as a complementary satellite holding in a diversified   Read more 

Bull Case

IYT is the cheapest option for exposure to the transportation subsector of the industrials industry. This ETF also is fairly liquid, with an average of 404,000 shares traded each day.
Transportation companies are well-positioned to continue benefiting from increased volumes if the economy remains strong.
About 65% of the assets that this ETF invests are in companies with economic moats, Morningstar's assessment that a firm enjoys a sustainable competitive advantage. Read more 

Bear Case

Depressed coal volumes have been pressuring railroad companies' performance.
If the economy takes a turn downward, this fund likely would feel pain.
Railroads, which make up 22% of this ETF, face the risk of reregulation on several fronts. Read more 

Morningstar Minute: Two disciplined takes on value investing 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Premium.