iShares US Transportation ETF

IYT

Market cap $610M

Q3 earnings season kicks off with PEP and DAL -- sector ETFs like ITA, XLK, and XLF may gain, while CARZ, PKB and IYT could lag.

Starting with a chart of the 20+ Year US Treasury Bonds ETF (NASDAQ: TLT), we can see that its price cleared the key moving averages and the July 6-month calendar range high. The Leadership indicator is the most important part to watch.

This is a good time to step back and gain some perspective on the key ETFs I follow as the market anticipates several economic happenings, such as: I start with the Transportation Sector ETF (NYSEARCA: IYT) looking at the weekly chart.

If you're interested in broad exposure to the Industrials - Transportation/Shipping segment of the equity market, look no further than the iShares U.S. Transportation ETF (IYT), a passively managed exchange traded fund launched on October 6, 2003.

Over the last 100 trading days, or roughly five months, the S&P 500 Index (SPX) has surged more than 25%.

Even with Monday's correction, small caps continue to see rotation.  The Russell 2000 ETF (NYSEARCA: IWM) had a topping pattern last week.

I recommend a buy on IYT, driven by its heavy exposure to market leaders Uber and Union Pacific, both poised for strong growth. IYT's focused, market-cap-weighted approach outperforms peers like XTN, offering superior returns and liquidity, despite a slightly higher expense ratio. The fund benefits from economic growth, infrastructure investment, and tech innovation, positioning it well for future transportation sector gains.

Over the weekend I wrote about the July 6-month calendar range reset happening this week! Our inside sectors of the US economy, retail (Retail Sector ETF (NYSEARCA: XRT)), small caps (Russell 2000 NYSEARCA: IWM)), and transportation (Transportation Sector (NYSEARCA: IYT)) all stopped at the January 6-month calendar range high and never cleared.

The iShares U.S. Transportation ETF (IYT) was launched on 10/06/2003, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Transportation/Shipping segment of the equity market.

IYT is a buy for its strong top holdings—Uber, Union Pacific, and UPS—each offering unique competitive advantages and growth prospects. The ETF boasts a superior performance track record, low expense ratio, and attractive valuation compared to peer transportation funds. Risks from recession and oil prices are mitigated by easing tariffs and a favorable energy outlook, reducing sector uncertainty.