The iShares U.S. Transportation ETF (IYT) Could Reach $300 After Recent Rally

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Published: Nov 10, 2021, 16:37 UTC

The iShares U.S. Transportation ETF (IYT) could reach the $300 mark before the end of the year after adding more than 26% to its value since the start of 2021, making it one of the top funds in the U.S. transportation sector.

IYT is Up by 26% YTD

The iShares U.S. Transportation ETF (IYT) is a passively managed exchange-traded fund that has been around since 2003. The fund is sponsored by Blackrock and has nearly $2 billion in assets under management. Hence, making it one of the biggest funds seeking to match the performance of the Industrials – Transportation/Shipping segment of the stock market.

Before fees and expenses, IYT is designed to match the performance of the Dow Jones Transportation Average Index. This index measures the performance of companies operating with the Industrial Transportation, Airline and General Industrial Services industries of the United States stock market.

At the time of writing, IYT has an annual operating expense of 0.4%, similar to other funds operating within this space. Its 12-month trailing dividend yield of 0.72% is also similar to what is obtainable within the sector. IYT currently has the heaviest allocation in the Industrials sector–roughly 100% of the portfolio.

IYT ETF chart. Source: FXEMPIRE

IYT Could Reach $300 Soon

IYTs has been performing excellently in recent weeks and could maintain this till the end of the year. At press time, the ETF is trading at $278 per share, down by 0.32% since the U.S. market opened a few hours ago.

Since the start of the year, IYT has added about 29.84% and is up about 33.94% in the past 52 weeks. During this period, the ETF has traded between $208.84 and $279.33. IYT has a beta of 1.22 and a standard deviation of 27.89 for the past three years. This makes it a high-risk fund in the U.S. transport market space.

IYT has exposure to 24 companies operating in the U.S. transportation industry. Its biggest holding is Fedex Corp (FDX), accounting for about 12.47% of total assets. Some of the other biggest holders include Kansas City Southern (KSU) and Norfolk Southern Corp (NSC).