Warren Buffetts Purchase Of Burlington Northern Provides Major Boost To The Transportation ETF

Share This Article
November 3, 2009 11:42am ETF BASIC NEWS NYSE:IYT

warren-buffett“Warren Buffett’s $34 billion purchase of Burlington Northern Santa Fe(BNI) sent the transports up 4.5% at the open Tuesday, and iShares Dow Jones


 U.S. Transportation Index (IYT) up 4.7%. At 11.38% of IYT as of yesterday’s close, BNI is the largest holding in the ETF,” Don Dion Reports From The Street.

“Shares of BNI gained more than 28%, and with the deal valued at $100 per share, shares have only about 3% more to go. BNI’s advance accounts for nearly 3% of IYT’s gain, and the halo effect lifted other railroads such as Union Pacific (UNP) and CSX (CSX) by 5.5% and 6.5% in early trading. Those two firms account for 8.12% and 4.92%, respectively, of IYT’s assets,” Dion Reports.

“As the economic slowdown cut into the profits of major railroads, traffic dropped and shares fell. The slowdown, however, has been an optimum time for railroad executives to reexamine their business models, and operators have been boosting efficiency even while worrying about the bottom line,” Dion Reports.

See Full Story: HERE

The investment (IYT) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones Transportation Average index. The fund uses a representative sampling strategy to try to track the index. The index measures the performance of the transportation sector of the U.S. equity market. The index includes companies in the following primary groups: airlines, trucking, railroads, air freight, transportation services and industrial services. It is nondiversified.

TOP 10 HOLDINGS ( 67.56% OF TOTAL ASSETS)  
 
Company Symbol % Assets
ALEXANDER BALDWIN (ALEX) 4.76
BURLINGTN N SANTE FE (BNI) 10.82
C.H. Robinson Worldwide, Inc. (CHRW) 4.82
CON-WAY INC (CNW) 5.89
FEDEX CORP (FDX) 10.36
G A T X CP (GMT) 4.77
J.B. Hunt Transport Services, I (JBHT) 5.04
RYDER SYSTEM INC (R) 4.96
UNION PACIFIC (UNP) 7.95
UNITED PARCEL SVC (UPS) 8.19

Chart for iShares Dow Jones Transportation Average (IYT)

  • Get 10 Trading Lessons FREE Click Here
  • GET A FREE TREND ANALYSIS FOR ANY ETF HERE!

  • 7 Best ETFs for the NEXT Bull Market

    Read Next



    Free Investing Ideas Newsletter!

    Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

    Most Popular



    7 Safe Haven Dividend Stocks for Turbulent Times

    Explore More from ETFDailyNews.com

    Free Investment Newsletter

    Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

    ETFDailyNews.com respects your privacy.

    Best ETFs

    We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

    View Top Rated ETFs

    Best Categories

    We've ranked dozens of ETF categories based on relative performance.

    Best ETF Categories