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The First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) opened Friday’s trading session lower by 4.4%, pulled down by the more than 20% plunge in shares of FedEx (NYSE:FDX). While FDX is embedded in 200 different exchange traded funds, FTXR has the highest portfolio weighting among funds on the market.
FTXR classifies FDX as the fund’s fourth largest holding behind C.H. Robinson Worldwide (CHRW), PACCAR Inc (PCAR), and Union Pacific (UNP). FDX has a 6.66% weighting in the ETF.
In total, FTXR holds approximately 26,150 shares of the delivery service firm which equates to a market value near $5.35M.
FTXR aims to offer the investment community exposure to 30 of the most liquid U.S.-listed companies within the transportation industry. Additionally, the ETF is attached with a 0.60% expense ratio and currently has $80.5M assets under management.
FedEx’s 22.3% decline in Friday’s early action represents the stocks largest one day drop since 1980. The plunge can be attributed to their reported preliminary Q1 results that widely missed estimates. The company expects Q1 adj. EPS of $3.44, well below the forecast expectations of $5.14.
Year-to-date price action: FTXR -24.5%, and FDX -39.8%.
Other transport and logistics ETFs that have also slid thanks to FedEx include the ProShares Supply Chain Logistics ETF (SUPL) -2.7% and the iShares U.S. Transportation ETF (IYT) -3.7%.
As a result of FDX’s crumbling price action, Wall Street analysts have rushed to downgrade the stock.
