BOSTON (TheStreet) -- Mutual funds that mainly buy transportation stocks have almost doubled the 2010 returns of the S&P 500 Index, the benchmark for most diversified U.S. funds.
Transportation-focused mutual funds have risen an average of 33% this year, reflecting expectations for faster economic growth in 2011. The performance may stretch well into next year if railroad-freight and airline-passenger traffic continues to increase and Internet-based sales growth remains on the same path, boosting package-delivery firms.
The Dow Jones Transportation Average, which tracks 20 industry stocks, is up 24% this year, led by United Continental (UAL), the world's largest airline, with a gain of 81%. The S&P 500 has climbed almost 13% and the technology-heavy Nasdaq has advanced 17%.
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