According to ETF Trends’ Tom Lydon, a few transportation ETFs are struggling this year. Railroad stocks have weakened on lower traffic, as energy companies are shipping less oil and coal because of lower prices.
The one exception is the airline industry, which benefits when fuel prices are low. Lydon points out that unlike the broader Dow Jones Transportation Average, the Dow Jones U.S. Airlines Index is trading above its long-term moving average. This is good news for the U.S. Global Jets ETF (JETS), the “only dedicated airline ETF on the market today.”
Article summary written by U.S. Global Investors.