The economy would get nowhere without transportation stocks.
The business of getting people and goods from point A to point B is massive. Companies in the transportation industry run trains, trucks, planes, and ships, operate warehouses, and help manufacturers move goods. Globally, transportation is an $8 trillion industry. There are so many different companies doing so many different things that an investor could fill out an entire portfolio, gaining exposure to every corner of the transportation world.
We've seen over the past few years how vital transportation is to the economy. Supply chain issues were in the news throughout the COVID-19 pandemic, with bottlenecks causing shortages in some key goods and helping to prompt fears of inflation. We've also seen the government and private sector pledge to invest massive sums in new transportation projects to ease the gridlock, creating potential opportunities for investors.
Given how broad the sector is, transportation is a natural fit for an exchange-traded fund, or ETF. An ETF allows investors to make one purchase and acquire shares in an entire range of companies operating in a single sector.
Here are some of the top ETFs for investors looking for exposure to the transportation industry without having to buy a basket of individual companies.
Six top transportation ETFs to invest in 2025
1. iShares U.S. Transportation ETF
The iShares U.S. Transportation ETF (IYT +0.53%) had $600.9 million in net assets as of October 2025. It has a broad target, attempting to provide exposure to U.S. airline, railroad, and trucking companies, and also mixing in some technology-infused transportation disruptors.
The ETF had 44 companies in its portfolio. Its top five holdings included:
- Uber Technologies (UBER +0.29%)
- Union Pacific (UNP -0.25%)
- United Parcel Service (UPS +0.12%)
- CSX (CSX +0.33%)
- FedEx (FDX +0.09%)
Railroads made up 25.1% of the fund, while passenger ground transportation made up 24.3% and air freight made up 19.3%. The iShares U.S. Transportation ETF has an expense ratio of 0.38%.
2. SPDR S&P Transportation ETF
The SPDR S&P Transportation ETF (XTN +1.31%) provides a broad view of the industry, defining transportation as air freight, airlines, airport services, trucks, rail, marine businesses, and port infrastructure. The ETF had $138.2 million in assets under management (AUM) as of October 2025. The ETF is set up to track the S&P Transportation Select Industry Index.
Its top five holdings as of October were:
- Joby Aviation (JOBY -3.17%)
- J.B. Hunt Transport Services (JBHT +0.47%)
- C.H. Robinson Worldwide (CHRW -0.13%)
- Kirby Corp. (KEX +1.16%)
- United Parcel Service
Overall, ground cargo transporters made up 32.8% of the fund, while airlines comprised 23.2%, air freight had 18%, and rail transportation had 9.9%. The SPDR S&P Transportation ETF has an expense ratio of 0.35%.
3. First Trust Nasdaq Transportation ETF
The First Trust Nasdaq Transportation ETF (FTXR +0.71%) tracks the Nasdaq U.S. Smart Transportation Index, which takes a fairly broad view of transportation. You'll see a greater emphasis on personal transportation in this list, which includes automakers. The ETF had $35.5 million in assets as of October 2025.
The ETF had 38 companies in its portfolio. Its top five holdings included:
- Tesla (TSLA +0.09%)
- Union Pacific
- Ford Motor Co. (F -0.84%)
- United Airlines Holdings (UAL +0.21%)
- General Motors (GM +1.21%)
Auto companies made up 27.7% of the ETF's assets, with airlines comprising 18.4%, railroads having 11.8%, and commercial vehicle and auto parts making up 8.4%. The fund has an expense ratio of 0.60%.
Related investing topics
Should you add transportation ETFs to your portfolio?
Here's why transportation ETFs could be a good choice:
- While the sector is vital to the economy, many individual transport companies have not been long-term winners. Subsectors such as airlines and truckers tend to be cyclical in nature, meaning the stocks tend to ebb and flow along with the economy.
- These types of sectors -- where there is strong potential for future growth, but individual companies tend to post choppy performances -- are ripe for ETF investing because it gives an investor exposure to the broader trends without the risks that come with trying to pick individual winners.
- The world needs well-functioning transportation systems, and the promise of technology has the potential to reinvent large portions of the transportation economy over time. A transportation ETF gives an investor a chance to go along for the ride while minimizing the risk of buying a lemon.
Important metrics for choosing transportation ETFs
Investors choosing between ETFs should take a careful look at the expense ratio, which is a calculation of the charges an investor pays to hold the fund. A higher expense ratio can eat into returns and offset gains.
Different ETFs focus on different areas, and some on the list above have exposure to companies that not every investor would consider to be a transport company. Make sure to pay attention to the holdings and check to ensure that the ETF holds aligns with the exposure you were looking for when considering the fund.
Assets under management (AUM) can also be a valuable metric because it shows the size of an ETF. A high AUM can indicate significant investor interest and help promote stability.
FAQ
About the Author
