Transportation ETF (XTN) Hits New 52-Week High
For investors seeking momentum, S&P Transportation SPDR XTN is probably on radar. The fund just hit a 52-week high and is up 33.21% from its 52-week low price of $63.47/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
XTN in Focus
The underlying S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index. The fund has major allocations to passenger airlines (29.9%), cargo ground transportation (28.6%) and air freight & logistics (17.2%). The product charges 35 bps in annual fees (See: all the Industrial ETFs here).
Why the Move?
Things are looking up for U.S. airline stocks as they promise improvement, thanks to the combination of lower fuel prices and indications of strong travel demand throughout the summer season. Despite the challenges of inflation and a potentially slowing economy, the recovery in travel expenditures following the pandemic has remained resilient.
There has been a notable increase in investments in new cargo handling and air logistics capacity across North American airports. The surge in freighter traffic and congestion at major hubs is specifically benefiting second-tier airports and those with a focus on cargo operations, providing them with a significant boost.According to market projections, the global ground and cargo handling services market is anticipated to witness substantial growth, with its value projected to reach $43.8 billion by 2028.
More Gains Ahead?
Currently, XTN has a Zacks ETF Rank #2 (Buy) and might continue its strong performance given a positive weighted alpha of 25.50.
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SPDR S&P Transportation ETF (XTN): ETF Research Reports
