The overall market may be sliding down the proverbial rat hole, but at least until the past two weeks, the transport sector was holding up quite well. Transportation is not a traditional safe haven, such as health care and consumer staples, but its relatively small losses compared to other sectors of the market are making some people think twice about transportation stocks.
The PowerShares Global Progressive Transportation Portfolio
Inception date: 9/18/2008
Expense ratio: 0.75%
Net assets: $2.1 million
The Progressive Transportation fund offers investors exposure to companies that use technology to improve fuel efficiency or reduce energy costs. Fund holdings include Oceanfreight
Fund prospects and risks
Whether you're talking about railways like Burlington Northern Santa Fe
The credit crisis tidal wave is swamping wide swaths of the global economy, and the aftereffects are likely to stunt markets for some time. In these difficult times, a sector that's in demand in good and bad times is likely to stand up better than those that are discretionary for consumers or businesses. Whether the transports can weather this storm remains to be seen, but given their recent outperformance, it's definitely an option you should consider.
Fool contributor Zoe Van Schyndel now lives in the Seattle area, where she enjoys the coffee and natural wonders. She does not own any of the funds or securities mentioned in this article. FedEx is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.