ETFI Global Transport Index Down 55%, Auto Makers Set to Receive $15B

Click to enlarge

The accompanying table presents the ETF Innovators [ETFI] Global Personal Transportation Index, which includes 40 companies with market caps of at least $150M. Since I last updated the index last month, the total market cap of the 40 companies has declined by 22% and currently stands at just under $450B with Volkswagen (VLKAY.PK) accounting for nearly one-fourth of that total, thanks to an 85% stock price gain in the past year and market cap of $112B.

Meanwhile, Congressional leaders are preparing to vote this week on a short-term rescue package for the U.S. auto makers, including index components General Motors (GM) and Ford (F), with the likely source of the $15B coming from the previously approved $25B in subsidized loans to encourage the development of more fuel efficient vehicles. The rescue package will likely entail short-term loans intended to ensure the survival of the auto makers through March 2009, leaving the long-term plan for U.S. auto makers up to the new administration.

The ETFI Global Transport Index declined by an average of 55% over the past year and 22% over the past month on an equal-weight basis compared to declines of about 40% in the past year for the S&P 500 SPDR (SPY) and Consumer Discretionary Sector SPDR (XLY). The index includes auto makers such as Toyota (TM) and Honda (HMC), recreational vehicle makers such as Polaris (PII) and Winnebago (WGO), truck makers such as Navistar (NAV) + Paccar (PCAR), and motorcycle makers such as Harley Davidson (HOG) and Yamaha (YAMHF.PK).

Disclosure: None