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.
Given how broad the sector is, transportation is a natural fit for an exchange-traded fund (ETF). An ETF allows investors to make one purchase and acquire shares in an entire range of companies operating in a single sector.
Top transportation ETFs to consider
Here are some of the top ETFs for investors looking for exposure to the transportation industry without having to buy individual companies.
1. iShares U.S. Transportation ETF
The iShares U.S. Transportation ETF (IYT -0.15%) had $1.2 billion in net assets as of February 2026. 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:
- Union Pacific (UNP +0.57%)
- Uber Technologies (UBER -3.75%)
- United Parcel Service (UPS +0.61%)
- FedEx (FDX +1.10%)
- Old Dominion Freight Line (ODFL -1.53%)
Investors in railroads might find the fund particularly interesting; the category made up 25.7% of the fund. Air freight accounted for 22.1% of holdings, and cargo ground transport made up 17.3%. 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 +1.15%) 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 $297 million in assets under management (AUM) as of February 2026 and is set up to track the S&P Transportation Select Industry Index.
Its top holdings in early 2026 included:
Overall, ground cargo transporters made up 34.2% of the fund, while airlines comprised 25.1%, air freight had 17%, and rail transportation had 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 +0.95%) 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 fund had $40.5 million in assets as of February 2026.
The ETF had 39 companies in its portfolio. Its top five holdings included:
- General Motors (GM +1.31%)
- Tesla (TSLA +0.44%)
- Ford Motor (F +0.72%)
- Union Pacific
- United Airlines Holdings (UAL -0.44%)
Investors in auto companies may be interested in the fund's weighting, which tilts toward auto companies that made up 24.7% of its assets in early 2026. Airlines comprised another 18.9%, railroads had 11.6%, and commercial vehicle and auto parts accounted for 8.8%. The fund has an expense ratio of 0.60%.
How to invest in transportation ETFs
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the ETF: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
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 holdings align 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.
Future outlook for the transportation industry
Here are some key trends shaping transportation:
- Autonomy nearing an inflection point: Autonomous vehicles have moved from pilot programs to commercial reality. Freight and logistics companies hope to soon move in the same direction, reducing the need for drivers and engineers and cutting major costs from their systems.
- Electrification beyond passenger cars: Last-mile delivery and semis are increasingly being powered by electric vehicles. Battery weights limit appeal to heavy industrial users such as railroads, but hybrid options could lead to lower emissions and better unit-cost economics in the years to come.
- Smarter logistics: Artificial intelligence (AI) tools are taking over the supply chains, helping with predictive maintenance (which should lessen fleet downtime) and improved routing.
Related investing topics
FAQ
Transportation ETFs FAQ
About the Author
Lou Whiteman has positions in Garrett Motion, Joby Aviation, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amphenol, Nvidia, Quanta Services, Taiwan Semiconductor Manufacturing, Tesla, Uber Technologies, and United Parcel Service. The Motley Fool recommends C.H. Robinson Worldwide, FedEx, Garrett Motion, General Motors, and Union Pacific. The Motley Fool has a disclosure policy.
