What is a transportation ETF?

A Transportation ETF is an investment fund that trades on a stock exchange and holds a portfolio of companies involved in the movement of people and goods. Think of it as a "pre-packaged basket" of the companies that keep the world moving. Instead of you having to pick which specific airline or railroad will perform best, you buy the whole industry.

Is there a transportation index fund?

Both the S&P Transportation Select Industry Index ETF and the First Trust Nasdaq Transportation ETF are built around widely followed transportation indexes.

Is there a railroad stock ETF?

There are only five publicly traded major North American railroads, which is not enough for a standalone ETF. But most transportation ETFs provide exposure to the railroads.

How can I invest in transportation?

You can invest in a broad range of transportation stocks, including individual railroads, airlines, shippers, and logistics companies. But given the broad scope of the industry, many investors would prefer to gain exposure through an index fund that includes representatives from a number of those subsectors.

Are transportation ETFs a good investment?

Transportation ETFs can be a good way to invest in a sector essential to the economy without taking on the risks of individual companies. ETFs can also help offset the cyclicality of transportation sub-sectors.

How do transportation ETFs perform during economic downturns?

Transportation companies and the ETFs that own them tend to be poor performers during economic downturns. Demand for transportation services is tied to economic activity, and when activity falls, revenue and profits also tend to fall.

What is the largest transportation ETF?

The largest transportation ETF is the iShares U.S. Transportation ETF.

Best Transportation ETFs for 2026 and How to Invest

These ETFs will take you places.

By Lou Whiteman – Updated May 6, 2026 at 6:36 PM EST | Fact-checked by Parker Hicks

Key Points

Investing in a transportation ETF offers broad industry exposure with a single purchase.
Top transportation ETFs include diverse holdings across sub-sectors like railroads and airlines.
ETFs reduce risk through diversification, balancing sector cyclicality and company-specific issues.

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.

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Artist illustration of various means of transportation. — Source: Getty Images

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NYSEMKT: IYT

iShares Trust - iShares U.s. Transportation ETF

Today's Change

(-0.15%) $-0.12

Current Price

$80.07

Key Data Points

Day's Range

$79.22 - $80.30

52wk Range

$64.28 - $83.24

Volume

552K

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2. SPDR S&P Transportation ETF

The SPDR S&P Transportation ETF (XTN -0.49%) 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 $203 million in assets under management (AUM) as of May 2026 and is set up to track the S&P Transportation Select Industry Index.

Its top holdings included:

Avis Budget Group (CAR +0.91%)
RXO (RXO +6.74%)
ArcBest (ARCB +3.07%)
SAIA (SAIA +0.24%)
Ryder System (R -0.07%)

Overall, the top five holdings make up about 16% of the fund. The SPDR S&P Transportation ETF has an expense ratio of 0.35%.

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NYSEMKT: XTN

SPDR Series Trust - State Street SPDR S&P Transportation ETF

Today's Change

(-0.49%) $-0.50

Current Price

$101.16

Key Data Points

Day's Range

$100.38 - $101.98

52wk Range

$74.36 - $120.89

Volume

29K

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3. First Trust Nasdaq Transportation ETF

The First Trust Nasdaq Transportation ETF (FTXR -2.22%) 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 $919.7 million in assets as of May 2026.

The ETF had 43 companies in its portfolio. Its top five holdings included:

Union Pacific
General Motors (GM -3.72%)
Tesla (TSLA -4.74%)
Ford Motor (F -7.46%)
United Parcel Service (UPS +0.52%)

The top five account for about 37% of the total fund assets. First Trust has an expense ratio of 0.60%.

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NASDAQ: FTXR

First Trust Exchange-Traded Fund VI - First Trust Nasdaq Transportation ETF

Today's Change

(-2.22%) $-0.94

Current Price

$41.26

Key Data Points

Day's Range

$41.26 - $41.63

52wk Range

$30.48 - $44.85

Volume

16K

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NYSEMKT: HAIL

SPDR Series Trust - State Street SPDR S&P Kensho Smart Mobility ETF

Today's Change

(-2.77%) $-1.12

Current Price

$39.29

Key Data Points

Day's Range

$39.03 - $39.56

52wk Range

$27.28 - $40.62

Volume

2.2K

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5. Direxion Daily Transportation Bull 3X Shares

The Direxion Daily Transportation Bull 3X Shares (TPOR -0.23%) ETF uses leverage to try to provide 3 times the returns of the Dow Jones Transportation Average Index. The strategy has a lot more potential upside than a traditional index-focused ETF, but also a lot more risk.

Leveraged ETFs can be risky and tend to be more expensive to own, which is true in this case. The ETF had about $18 million in assets in May 2026.

As of May 2026, the ETF's top five holdings were:

Uber Technologies
Union Pacific
FedEx
Delta
Old Dominion Freight Line (ODFL +2.09%)

Those five companies account for just over half of the fund's total assets. The Direxion Daily Transportation Bull 3X Shares has an expense net ratio of 0.99%.

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NYSEMKT: TPOR

Direxion Shares ETF Trust - Direxion Daily Transportation Bull 3x Shares

Today's Change

(-0.23%) $-0.08

Current Price

$34.09

Key Data Points

Day's Range

$33.00 - $34.09

52wk Range

$21.04 - $40.43

Volume

7.1K

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6. SmartETFs Smart Transportation and Technology ETF

The SmartETFs Smart Transportation and Technology ETF (MOTO -2.63%) is designed to invest in the companies that will lead the evolution of transportation, including autonomous vehicles, flying taxis, electric powertrains, and transportation as a service.

By its nature, this is a much more tech-centric list of holdings than a traditional transportation ETF. Investors might consider it a good way to invest in industry innovation without tying too much capital to one speculative company.

The ETF has about $9.7 million in assets. As of May 2026, the ETF's top holdings included:

Quanta Services (PWR -1.29%)
Taiwan Semiconductor (TSM -3.08%)
Alphabet (GOOG -1.03%)
Analog Devices (ADI -2.18%)
Infineon Technologies (IFX -4.23%)

The top five account for 42% of the portfolio. The SmartETFs Smart Transportation and Technology ETF has an expense ratio of 0.68%.

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NYSEMKT: MOTO

Guinness Atkinson Funds - Guinness Atkinson Smart Transportation & Technology ETF

Today's Change

(-2.63%) $-1.78

Current Price

$65.79

Key Data Points

Day's Range

$65.79 - $65.79

52wk Range

$44.11 - $67.57

Volume

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How to buy Transportation ETFs

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the ETF: Enter the ticker “[ticker]” into the search bar to bring up the ETFs 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.

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Benefits and risks of investing in Transportation ETFs

Benefits

Economic Barometer: Transportation stocks often lead the market. When businesses are shipping more goods and consumers are traveling, it usually signals an expanding economy, allowing you to capture growth early in a cycle.
Built-in Diversification: Instead of risking your capital on a single airline or a specific trucking company, these ETFs spread your investment across multiple sub-sectors, protecting you if one specific niche (like ocean freight) underperforms.
Exposure to Innovation: Modern transportation ETFs often include companies focused on "disruptors," such as autonomous vehicle technology, electric delivery fleets, and advanced logistics software.
Dividends and Cash Flow: Many established transportation companies, particularly railroads and major freight carriers, are "cash cows" that provide consistent dividend yields to the ETF, which are then passed on to you.

Risks

Extreme Cyclicality: This sector is highly sensitive to the business cycle. During a recession or economic slowdown, transportation is often the first to suffer as shipping volumes drop and discretionary travel (airlines) is cut.
Fuel Price Sensitivity: Profitability in this sector is heavily tied to energy costs. A sudden spike in oil or jet fuel prices can instantly squeeze the margins of the companies within the ETF, dragging down the fund's price.
Labor and Regulatory Issues: Transportation is a heavily unionized and regulated industry. Strikes, changes in safety mandates, or new environmental regulations can lead to unexpected operational costs.
Geopolitical and Trade Sensitivity: Global transportation ETFs are vulnerable to trade wars and tariffs. If international trade slows due to political tension, shipping and cargo companies see an immediate decline in revenue.
Concentration Risk: Some transportation ETFs are surprisingly top-heavy.

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FAQ

Transportation ETFs FAQ

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About the Author

Lou Whiteman is a contributing Motley Fool stock analyst covering aerospace, defense, transport, manufacturing, specialty finance, and bank stocks. Previously, Lou was a financial analyst and senior writer for TheStreet, a venture capital specialist for The Deal LLC, and a high school personal finance teacher. He holds a bachelor’s degree in communications from Loyola University Maryland and completed a fellowship at the ABA Stonier Graduate School of Banking.

TMFLouWhiteman

@louwhiteman

Lou Whiteman has positions in Garrett Motion, RXO, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Intel, Old Dominion Freight Line, Quanta Services, Taiwan Semiconductor Manufacturing, Tesla, Uber Technologies, and United Parcel Service. The Motley Fool recommends Delta Air Lines, FedEx, Garrett Motion, General Motors, ON Semiconductor, RXO, and Union Pacific. The Motley Fool has a disclosure policy.

Best Transportation ETFs for 2026 and How to Invest

These ETFs will take you places.

Key Points

Key Data Points

2. SPDR S&P Transportation ETF

Key Data Points

3. First Trust Nasdaq Transportation ETF

Key Data Points

Key Data Points

5. Direxion Daily Transportation Bull 3X Shares

Key Data Points

6. SmartETFs Smart Transportation and Technology ETF

Key Data Points

How to buy Transportation ETFs

Benefits and risks of investing in Transportation ETFs

Benefits

Risks

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FAQ

Transportation ETFs FAQ

What is a transportation ETF?

What is a transportation ETF?

Is there a transportation index fund?

Is there a transportation index fund?

Is there a railroad stock ETF?

Is there a railroad stock ETF?

How can I invest in transportation?

How can I invest in transportation?

Are transportation ETFs a good investment?

Are transportation ETFs a good investment?

How do transportation ETFs perform during economic downturns?

How do transportation ETFs perform during economic downturns?

What is the largest transportation ETF?

What is the largest transportation ETF?

About the Author

Read Next

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Key Data Points

3. First Trust Nasdaq Transportation ETF

Key Data Points

How to buy Transportation ETFs

Benefits and risks of investing in Transportation ETFs

Benefits

Risks

Best Construction Stocks to Buy in 2026 and How to Invest

6 Best Shipping Stocks in 2026 and How to Invest

Best Industrial Stocks to Buy in 2026 and How to Invest in Them

Best Industrial ETFs for 2026 and How to Invest

Transportation ETFs FAQ

What is a transportation ETF?

What is a transportation ETF?

Is there a transportation index fund?

Is there a transportation index fund?

Is there a railroad stock ETF?

Is there a railroad stock ETF?

How can I invest in transportation?

How can I invest in transportation?

Are transportation ETFs a good investment?

Are transportation ETFs a good investment?

How do transportation ETFs perform during economic downturns?

How do transportation ETFs perform during economic downturns?

What is the largest transportation ETF?

What is the largest transportation ETF?

6 top Transportation ETFs for 2026

1. iShares U.S. Transportation ETF

Key Data Points

Key Data Points

5. Direxion Daily Transportation Bull 3X Shares

Key Data Points

Key Data Points

2. SPDR S&P Transportation ETF

4. SPDR S&P Kensho Smart Mobility ETF

6. SmartETFs Smart Transportation and Technology ETF