Transport ETFs At A Glance Post Q2 Earnings

For 2019, Delta raised its earnings per share guidance to $6.75-$7.25 from $6-$7. The Zacks Consensus Estimate was pegged at $6.93 per share at the time of earnings release. United Continental tapered its full-year earnings outlook by lifting the lower end of the range from $10-$12 to $10.5-$12. The Zacks Consensus Estimate at the time of earnings release stands at $11.20 per share.

Last but not the least, earnings of the leading trucking carrier J.B. Hunt (JBHT - Free Report) surpassed the Zacks Consensus Estimate by a couple of cents. However, revenues of $2.26 billion marginally fell short of the consensus estimate of $2.28 billion.

ETFs in Focus

Decent results have led to mixed trading in transportation ETFs over the past month. SPDR S&P Transportation ETF (XTN - Free Reporthas inched up 1.2% while iShares Dow Jones Transportation Average Fund (IYT - Free Reportand First Trust Nasdaq Transportation ETF (FTXR - Free Reporthave slipped 0.6% and 3.8%, respectively.

XTN

This fund tracks the S&P Transportation Select Industry Index holding 43 stocks in its basket. The in-focus firms account for more than 2% share each. Further, about 34.7% of the portfolio is dominated by trucking while airlines, and air freight & logistics take around one-fourth share each. With AUM of $140.5 million, the fund charges 35 bps in fees per year from investors and trades in a lower volume of around 13,000 shares a day. It has a Zacks ETF Rank #4 (Sell) with a High risk outlook.

IYT

The fund tracks the Dow Jones Transportation Average Index giving investors exposure to a small basket of 20 securities. The in-focus six of the seven firms make up for the top 10 holdings with a combined 45.7% share while Delta Airlines accounts for 3.5% share. From a sector perspective, railroads, and air freight & logistics take the largest share with 31.7% and 25.9% share, respectively, while airlines and trucking round off the next two spots with double-digit exposure each. The fund has accumulated nearly $538.8 million in AUM and sees solid trading volume of around 255,000 shares a day. It charges 43 bps in annual fees and has a Zacks ETF Rank #4 with a High risk outlook.

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