##  [# Railroad ETFs Gain Steam as UNP, NSC Announce $85B Merger](/sections/data-dive/railroad-etfs-gain-steam-unp-nsc-announce-85b-merger) 

 

# Railroad ETFs Gain Steam as UNP, NSC Announce $85B Merger

 

 

\- Transportation ETFs holding Union Pacific and Norfolk Southern offer merger exposure.  
\- IYT holds both railroad companies, while multiple funds track different strategies.  
\- The leveraged TPOR ETF has posted a 57% three-month return despite negative year-to-date performance.



 

 

 

 

 [![DJ](/sites/default/files/styles/author_image_icon/public/2024-07/5.png?itok=LA-jevm_)](/authors/dj-shaw) 

[By DJ Shaw ](/authors/dj-shaw)

 Jul 29, 2025

 Edited by: David Tony

 

 

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Even before Tuesday's announced $85 billion merger deal, [transportation](/topics/transportation) exchange-traded funds holding [Union Pacific Corp. (UNP)](/stock/unp) and [Norfolk Southern Corp. (NSC)](/stock/nsc) had posted double-digit gains in recent months.

The [**iShares US Transportation ETF (IYT)**](/iyt), with $748 million in assets under management, leads the pack with an 18.8% three-month return, according to FactSet data. Union Pacific represents IYT's second-largest holding at 15.6%, while Norfolk Southern ranks fifth at 4.7%.

## Deal Impacts IYT, Transportation ETF Strategies

The merger, which creates America's first coast-to-coast rail network spanning 50,000 miles, affects multiple ETF strategies, from broad transportation exposure to specialized logistics plays, providing investors with various entry points into the railroad consolidation story, according to [a report](https://www.nytimes.com/2025/07/29/business/union-pacific-norfolk-southern-merger.html) by The New York Times.

IYT's top holding remains [Uber Technologies Inc. (UBER)](/stock/uber) at 22.2%, with [United Parcel Service Inc. (UPS)](/stock/ups) shares representing 5.4% of the fund. The ETF charges a 0.39% expense ratio and has attracted $28.9 million in net inflows over the past month.

The smaller [**ProShares Supply Chain Logistics ETF (SUPL)**](/supl) takes a different approach, tracking 40 companies that generate at least 75% of their revenue from logistics operations, according to FactSet. Norfolk Southern leads SUPL's holdings at 4.9%, followed by [CSX Corp. (CSX)](/stock/csx) at 4.8% and [FedEx Corp. (FDX)](/stock/fdx) at 4.8%. The $984,000 fund posted a nearly 14% three-month gain and carries a 0.58% expense ratio.

 
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## Infrastructure Plays Gain Steam

The [**Themes US Infrastructure ETF (HWAY)**](/hway) captured the strongest recent performance with a 22% three-month return, though the $1.2 million fund remains small, according to the data. CSX and Norfolk Southern rank third and fourth among HWAY's holdings at 4.5% each, behind [Caterpillar Inc. (CAT)](/stock/cat) and [Emerson Electric Co. (EMR)](/stock/emr).

The [**Pacer Industrials and Logistics ETF (SHPP)**](/shpp) focuses on global companies deriving half their revenue from transportation and logistics software. Union Pacific holds a 9.3% allocation in the $577,000 fund, while UPS shares represent 7.3%. SHPP posted a 13% three-month gain despite $551,000 in year-to-date outflows.

The leveraged [**Direxion Daily Transportation Bull 3X Shares (TPOR)**](/tpor) amplifies moves in transportation stocks with triple exposure. The $16.9 million fund delivered a 57.6% three-month return but remains down 3.7% year to date. Uber represents TPOR's largest equity holding at 18%, with Union Pacific at 13.1%.

### Transportation ETF Comparison

**Fund**[**iShares US Transportation ETF (IYT)**](/iyt)[**ProShares Supply Chain Logistics ETF (SUPL)**](/supl)[**Themes US Infrastructure ETF (HWAY)**](/hway)[**Pacer Industrials and Logistics ETF (SHPP)**](/shpp)[**Direxion Daily Transportation Bull 3X Shares (TPOR)**](/tpor)**Issuer**BlackRockProShare AdvisorsThemes ETFPacer AdvisorsRafferty Asset Management**AUM**$748M$983.8K$1.2M$577K$16.9M**Expense Ratio**0.39%0.58%0.29%0.61%0.97%**Year-to-Date Performance**5.9%4.4%15%8.7%-3.7%**Year-to-Date Fund Flows**-$28.1M$0-$253.8K-$550.8K-$2.9M*Source: etf.com &amp; FactSet data*

The merger would create transcontinental shipping routes and eliminate railroad switching bottlenecks that have plagued cross-country freight movement, according to The New York Times.



 

 

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  A graduate of The University of Texas, Arlington with a BA in Communications, DJ has covered retirement plans, mortgage news, and financial advisor…   [View Bio](/authors/dj-shaw)

 



 

 


 Related Topics  [Transportation](http://www.etf.com/topics/transportation) 

 [Shipping](http://www.etf.com/topics/shipping) 

 [Infrastructure](http://www.etf.com/topics/infrastructure) 

 [Blackrock](http://www.etf.com/topics/blackrock) 

 [ProShares](http://www.etf.com/topics/proshares)