State Street SPDR S&P Transportation ETF

XTN

Market cap $218M

I assign State Street SPDR S&P Transportation ETF a 'sell' rating, favoring the cap-weighted iShares Transportation Average ETF instead. XTN's equal-weighting scheme results in a lower-quality, higher-risk portfolio with inferior operational efficiency and heightened sensitivity to earnings changes. XTN trades at higher P/E multiples than IYT, with weaker historical and forward growth — forward EPS growth is just 3.08% versus IYT's 13.91%.

Making its debut on 01/26/2011, smart beta exchange traded fund State Street SPDR S&P Transportation ETF (XTN) provides investors broad exposure to the Industrials ETFs category of the market.

Designed to provide broad exposure to the Industrials - Transportation/Shipping segment of the equity market, the State Street SPDR S&P Transportation ETF (XTN) is a passively managed exchange traded fund launched on January 26, 2011.

I am rotating from Big Tech to cyclical value, energy, and high-quality dividend growth stocks amid complex market interconnections. AI is the dominant disruptor, impacting macroeconomics, labor, energy demand, and driving market concentration in the Mag-7. Current market valuations are unfavorable and top-heavy, with over 40% in the largest ten holdings.

September records lower-than-expected inflation! Energy (OIH), Restaurants (EATZ), Healthcare (XLV) and Transportation (XTN) ETFs may still shine in the near term.

XTN is comprised of 44 transportation stocks across the entire U.S. total stock market. Its expense ratio is 0.35%, and the ETF has $150 million in assets under management. Its weighting scheme is unique. Often referred to as an equal-weight fund, XTN's Index actually calculates a maximum security weight for each component based on liquidity and size. XTN has much more assigned to the small/micro-cap segments than competitors like IYT and FTXR. With that composition, the logical result is much lower quality, which I could verify.

Designed to provide broad exposure to the Industrials ETFs category of the market, the SPDR S&P Transportation ETF (XTN) is a smart beta exchange traded fund launched on 01/26/2011.

Transport ETFs have been seeing solid trading over the past month on strong first-quarter earnings.

The U.S. economy added 177,000 jobs in April 2025, a slowdown from the downwardly revised 185,000 in March, but significantly surpassing market expectations of 130,000.

XTN allows investors to get adjusted equal-weight exposure to U.S. listed stocks operating in the transportation sector. 26% of XTN is represented by passenger airlines, which is a subsector particularly vulnerable during challenging economic conditions. XTN's long-term performance has been very poor versus a broader market index, especially since the pandemic.