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Is SPDR S&P Transportation ETF (XTN) a Strong ETF Right Now?
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A smart beta exchange traded fund, the SPDR S&P Transportation ETF (XTN - Free Report) debuted on 01/26/2011, and offers broad exposure to the Industrials ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by State Street Global Advisors. XTN has been able to amass assets over $214.56 million, making it one of the average sized ETFs in the Industrials ETFs. Before fees and expenses, XTN seeks to match the performance of the S&P Transportation Select Industry Index.
The S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for XTN are 0.35%, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.86%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 100% of the portfolio, the fund has heaviest allocation to the Industrials sector.
Looking at individual holdings, Kirby Corp (KEX - Free Report) accounts for about 3.64% of total assets, followed by Skywest Inc (SKYW - Free Report) and C.h. Robinson Worldwide Inc (CHRW - Free Report) .
The top 10 holdings account for about 30.79% of total assets under management.
Performance and Risk
So far this year, XTN has lost about -4.04%, and is down about -7% in the last one year (as of 07/24/2024). During this past 52-week period, the fund has traded between $66.94 and $88.03.
The fund has a beta of 1.33 and standard deviation of 25.14% for the trailing three-year period, which makes XTN a high risk choice in this particular space. With about 45 holdings, it has more concentrated exposure than peers.
Alternatives
SPDR S&P Transportation ETF is an excellent option for investors seeking to outperform the Industrials ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
IShares U.S. Transportation ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index and the U.S. Global Jets ETF (JETS - Free Report) tracks U.S. Global Jets Index. IShares U.S. Transportation ETF has $737.21 million in assets, U.S. Global Jets ETF has $1.08 billion. IYT has an expense ratio of 0.40% and JETS charges 0.60%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is SPDR S&P Transportation ETF (XTN) a Strong ETF Right Now?
A smart beta exchange traded fund, the SPDR S&P Transportation ETF (XTN - Free Report) debuted on 01/26/2011, and offers broad exposure to the Industrials ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by State Street Global Advisors. XTN has been able to amass assets over $214.56 million, making it one of the average sized ETFs in the Industrials ETFs. Before fees and expenses, XTN seeks to match the performance of the S&P Transportation Select Industry Index.
The S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for XTN are 0.35%, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.86%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 100% of the portfolio, the fund has heaviest allocation to the Industrials sector.
Looking at individual holdings, Kirby Corp (KEX - Free Report) accounts for about 3.64% of total assets, followed by Skywest Inc (SKYW - Free Report) and C.h. Robinson Worldwide Inc (CHRW - Free Report) .
The top 10 holdings account for about 30.79% of total assets under management.
Performance and Risk
So far this year, XTN has lost about -4.04%, and is down about -7% in the last one year (as of 07/24/2024). During this past 52-week period, the fund has traded between $66.94 and $88.03.
The fund has a beta of 1.33 and standard deviation of 25.14% for the trailing three-year period, which makes XTN a high risk choice in this particular space. With about 45 holdings, it has more concentrated exposure than peers.
Alternatives
SPDR S&P Transportation ETF is an excellent option for investors seeking to outperform the Industrials ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
IShares U.S. Transportation ETF (IYT - Free Report) tracks Dow Jones Transportation Average Index and the U.S. Global Jets ETF (JETS - Free Report) tracks U.S. Global Jets Index. IShares U.S. Transportation ETF has $737.21 million in assets, U.S. Global Jets ETF has $1.08 billion. IYT has an expense ratio of 0.40% and JETS charges 0.60%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.