These ETFs May Provide Traction After Transports Stall

On Monday, Wolfe Research issued a note highlighting what they see as a buying opportunity on weakness in the transportation sector.

Over the past two weeks, Wolfes average transport stock fell 6 percent, which they note is more than double the current S&P 500 pullback.

Bull opportunities may exist in Canadian National Railway (NYSE:CNI), Westinghouse Air Brake Technologies, akaWabtec (NYSE:WAB) and Ryder (NYSE:R), after having their stock prices knocked down in light of very strong Q2 reports."

Wolfe states that Canadian Pacific (NYSE:CP) remains their rail stock favorite choice, while it's also warming to Union Pacific (NYSE:UNP) after its recent underperformance.

Q2 freight volumes grew 5 percent year over year, which is a major improvement over the 1-2 percent year over year reported in Q1.

Wolfe analyst Scott Group is skeptical that Q2 strength was driven by a weather-related bounce in April and a pull forward of freight in Q2 ahead of potential West Coast port labor issue.

Some traders may be skeptical too, trying to bet on which of these equities will offer the best return.

Benzinga grabbed three transportation ETFs that will offer broad exposure to the potential rebound Wolfe Research sees.

The table below shows three ETFs that offer exposure to Transportation and their TYD performance: