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.
6 top transportation ETFs
6 top transportation ETFs to Invest in 2025
ETFs 1 - 3
1. iShares U.S. Transportation ETF
The iShares U.S. Transportation ETF (IYT 1.45%) had $702.7 million in net assets as of mid-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 45 companies in its portfolio. Its top five holdings included:
- Uber Technologies (UBER 1.53%)
- Union Pacific (UNP 0.6%)
- United Parcel Service (UPS 0.51%)
- Delta Air Lines (DAL 3.49%)
- Norfolk Southern (NSC 0.47%)
Railroads made up 26.3% of the fund, while passenger ground transportation makes up 23.5% and passenger airlines make up 17%. The iShares U.S. Transportation ETF has an expense ratio of 0.39%.
2. SPDR S&P Transportation ETF
The SPDR S&P Transportation ETF (XTN 1.63%) 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 $182.8 million in assets under management (AUM) as of mid-2025. The ETF is set up to track the S&P Transportation Select Industry Index.
Its top five holdings as of May were:
Overall, ground cargo transporters made up 28.8% of the fund, while airlines comprised 27.1%, air freight had 15.6%, and passenger ground transportation had 13.3%. 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 1.3%) 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, including autos, in this list. The ETF had $28.3 million in assets as of mid-2025.
The ETF had 38 companies in its portfolio. Its top five holdings included:
- Tesla (TSLA 1.82%)
- Ford Motor Co. (F 0.71%)
- General Motors (GM -0.78%)
- United Airlines Holdings (UAL 2.15%)
- United Parcel Service
Auto companies made up 27.1% of the ETF's assets, with airlines comprising 16.4%, railroads having 11.9%, and commercial vehicle and equipment leasing stocks making up 10.6%. The fund has an expense ratio of 0.60%.
ETFs 4 - 6
4. SPDR S&P Kensho Smart Mobility ETF
The SPDR S&P Kensho Smart Mobility ETF (HAIL 1.85%) is set up to generally track the Kensho Smart Transportation Index, seeking out companies with products and services that are pushing transportation into the digital age. That includes investments in autonomous vehicles, drones, and next-generation transportation systems.
As of mid-2025, the ETF had $19.9 million in assets under management, and its top five holdings were:
Automakers accounted for 20.9% of the portfolio. Auto parts manufacturers made up 18.5%, semiconductors accounted for 13.1%, and electronic equipment makers accounted for 7.6%. Overall, 18 subsectors are represented in the ETF.
The SPDR S&P Kensho Smart Mobility ETF has an expense ratio of 0.45%.
5. Direxion Daily Transportation Bull 3X Shares
The Direxion Daily Transportation Bull 3X Shares (TPOR 4.2%) ETF uses leverage to try to provide three 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 tend to be more expensive to own, which is true in this case. The ETF has about $13.9 million in assets.
As of mid-2025, the ETF's top five holdings were:
- Uber Technologies
- Union Pacific
- United Parcel Service
- Norfolk Southern
- Old Dominion Freight Line (ODFL 1.93%)
Overall, 63.6% of the ETF were invested in ground transportation companies, while 18.5% was in air freight and logistics, 15.9% in airlines, and 1.9% in marine stocks. The Direxion Daily Transportation Bull 3X Shares has an expense net ratio of 0.97%.
6. SmartETFs Smart Transportation and Technology ETF
The SmartETFs Smart Transportation and Technology ETF (MOTO 1.51%) 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 $7 million in assets. As of mid-2025, the ETF's top five holdings were:
- Amphenol (APH 1.6%)
- BYD (BYDDY 0.07%)
- Quanta Services (PWR 1.59%)
- Taiwan Semiconductor Manufacturing (TSM 0.99%)
- Volvo (VLVL.Y 2.77%)
Technology and transportation make up 45% of the fund, while Smart Transportation accounts for 35%. The SmartETFs Smart Transportation and Technology ETF has an expense ratio of 0.68%.
Related investing topics
Should you invest?
Should you add transportation ETFs to your portfolio?
The interesting thing about transports is that while the sector is vital to the economy, many of the individual 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.
FAQs
Transportation ETFs FAQs
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.
Are there shipping ETFs?
There are a number of shipping specific ETFs, including the Breakwave Dry Bulk Shipping ETF (NYSEMKT:BDRY) and the SonicShares Global Shipping ETF (NYSEMKT:BOAT). Investors should be aware that shippers are highly cyclical and tend to move together based on current demand trends, creating the risk of volatility.
How to 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.
