Top Transportation ETFs for 2026 and How to Invest

These ETFs will take you places.

By Lou Whiteman – Updated Jan 28, 2026 at 12:50 PM EST | Fact-checked by Frank Bass

Key Points

The transportation sector, an $8 trillion industry, is crucial to the global economy, moving goods and people efficiently.
Transportation ETFs offer diversified investment in the sector across various companies and subsectors.
Top transportation ETFs include iShares U.S. Transportation, SPDR S&P Transportation, and more.
We’re bullish on these 10 stocks ›

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 for 2026

1. iShares U.S. Transportation ETF

The iShares U.S. Transportation ETF (IYT +0.73%) had $875.9 million in net assets as of January 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:

Uber Technologies (UBER -4.52%)
Union Pacific (UNP +2.94%)
United Parcel Service (UPS +3.34%)
CSX (CSX +1.05%)
FedEx (FDX +2.70%)

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 +1.17%) 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 $248.2 million in assets under management (AUM) as of January 2026. The ETF is set up to track the S&P Transportation Select Industry Index.

Its top five holdings as of January were:

Joby Aviation (JOBY -6.29%)
J.B. Hunt Transport Services (JBHT +2.33%)
C.H. Robinson Worldwide (CHRW -2.41%)
Kirby Corp. (KEX +0.02%)
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 +0.90%) 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 $34.1 million in assets as of January 2026.

The ETF had 38 companies in its portfolio. Its top five holdings included:

Tesla (TSLA -4.13%)
Union Pacific
Ford Motor Co. (F +0.18%)
United Airlines Holdings (UAL -3.17%)
General Motors (GM +0.04%)

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%.

4. SPDR S&P Kensho Smart Mobility ETF

The SPDR S&P Kensho Smart Mobility ETF (HAIL -0.47%) 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 January 2026, the ETF had $21.46 million in assets under management. Its top five holdings were:

Ballard Power Systems (BLDP -6.47%)
Indie Semiconductor (INDI -3.23%)
Nio (NIO -2.86%)
Garrett Motion (GTX +0.17%)
Nebius Group (NBIS -11.53%)

Auto parts manufacturers made up 20.3% of the portfolio. Automakers accounted for 17.5%, semiconductors for 13.7%, and electronic equipment makers accounted for 8.9%. Overall, 19 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 +1.63%) 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 $14.5 million in assets.

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

Uber Technologies
Union Pacific
United Parcel Service
CSX
Norfolk Southern

Overall, 65.7% of the ETF was invested in ground transportation companies, while 17.8% was in air freight and logistics, 15.2% in airlines, and 1.3% in marine transportation. The Direxion Daily Transportation Bull 3X Shares has an expense net ratio of 0.97%.

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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.

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FAQ

Transportation ETFs FAQ

About the Author

Lou Whiteman is a contributing Motley Fool industrials and financial services 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.

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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.