Should You Invest in the iShares U.S. Transportation ETF (IYT)?

Core Viewpoint - The iShares U.S. Transportation ETF (IYT) offers investors a low-cost, transparent, and flexible option for gaining exposure to the Industrials - Transportation/Shipping segment of the equity market, making it suitable for long-term investment strategies [1][2]. Group 1: ETF Overview - The iShares U.S. Transportation ETF was launched on October 6, 2003, and is passively managed [1]. - The fund is sponsored by Blackrock and has assets exceeding $602.26 million, categorizing it as an average-sized ETF [3]. - IYT aims to match the performance of the Dow Jones Transportation Average Index before fees and expenses [3]. Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.39%, positioning it among the cheaper options in the market [5]. - It offers a 12-month trailing dividend yield of 1.07% [5]. - Year-to-date, IYT has returned approximately 4.92%, with a one-year return of about 7.73% as of September 10, 2025 [8]. - The fund has traded between $55.22 and $75.4 over the past 52 weeks [8]. Group 3: Sector Exposure and Holdings - The ETF is fully allocated to the Industrials sector, with about 100% of its portfolio [6]. - Uber Technologies Inc (UBER) constitutes approximately 23.11% of total assets, followed by Union Pacific Corp (UNP) and United Airlines Holdings Inc (UAL) [7]. - The top 10 holdings represent about 74.7% of total assets under management [7]. Group 4: Risk and Alternatives - IYT has a beta of 1.22 and a standard deviation of 22.17% over the trailing three-year period, indicating a higher risk profile compared to peers [8]. - The ETF carries a Zacks ETF Rank of 3 (Hold), suggesting it is a reasonable option for investors seeking exposure to the Industrials ETFs area [9]. - Alternatives include the SPDR S&P Transportation ETF (XTN) and the U.S. Global Jets ETF (JETS), with respective assets of $143.30 million and $817.26 million [10].