The iShares Dow Jones Transportation Average Index Fund, which began trading on the American Stock Exchange Friday, will track the Dow Jones Transportation Average. The new fund will expand on Barclays’ almost $3 billion iShares Dow Jones family lineup and will have a 0.60% expense ratio, according to a news release.
The Dow Jones Transportation Average Index, a price-weighted index, measures the performance of the transportation sector of the US equity market. Component companies include airlines, industrial transportation companies and general industrial services companies.
iShares are index funds that are bought and sold like common stocks on national securities exchanges as well as certain foreign exchanges. Investors can purchase and sell shares through any brokerage firm, financial adviser, or online broker, and hold the funds in any type of brokerage account.