This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Top 10 Industrial Sector ETFs

Stocks in this article: XLIVISIYJEXIITAPPAPRN

Our goal in this profile is to help investors wade through the many competing ETF offerings available. Using our long experience as an ETF publication, and nearly 40 years in the investment business, we can help select those ETFs that matter and may or may not be repetitive. The result is a more manageable list of issues from which to view and make selections.

There is currently an expanding list of 20 ETFs oriented to the industrial sector with more on the way. The following analysis features a fair representation of ETFs available. We believe from these investors may choose an appropriate ETF to satisfy the best index-based offerings individuals and financial advisors may utilize.

We're not ranking these ETFs favoring one over another so don't let the listing order mislead you. Although we may use some of these in ETF Digest portfolios it's not our intention to recommend one over another.

ETFs are based on indexes tied to well-known index providers including Russell, S&P, Barclays, MSCI, Dow Jones and so forth. Also included are some so-called "enhanced" indexes that attempt to achieve better performance through more active management of the index.

Where competitive issues exist and/or repetitive issues available at a fee cost saving we mention those as other choices. New issues are coming to market consistently (especially globally) and sometimes these issues will need to become more seasoned before they may be included at least in our listings.

We feature a technical view of conditions from monthly chart views. Simplistically, we recommend longer-term investors stay on the right side of the 12 month simple moving average. When prices are above the moving average, stay long, and when below remain in cash or short. Premium members to the ETF Digest receive added signals when markets become extended such as DeMark triggers to exit overbought/oversold conditions.

For traders and investors wishing to hedge, leveraged and inverse issues are available to utilize from ProShares and Direxion and where available these are noted.

XLI (SPDR Industrials ETF) follows the Industrial Select Sector Index that contains constituents from a wide variety of U.S. manufacturers. The fund was launched in December 1998. The expense ratio is .20%. AUM (Assets under Management) equal $3.4 billion and average daily trading volume is over 29M shares. As of early November 2011 the annual dividend was $.69 making the current yield roughly 2.05% and YTD return -5.70%. 

An alternative issue FIL (Focus Morningstar Industrials ETF) was recently launched by FocusShares and Scottrade. It is too new to rate for now but clearly the fees are low and commission free trading is available for Scottrade customers.    

Both ProShares and Direxion Shares maintain leveraged long and short ETFs for hedging or speculation needs.

Data as of November 2011

XLI Top Ten Holdings & Weightings

  1. General Electric Co (GE): 10.73%
  2. United Technologies Corp (UTX): 5.96%
  3. United Parcel Service Inc (UPS) (UPS): 5.66%
  4. 3M Co (MMM): 4.69%
  5. Caterpillar Inc (CAT): 4.57%
  6. The Boeing Co (BA): 4.20%
  7. Union Pacific Corp (UNP): 3.89%
  8. Honeywell International, Inc. (HON): 3.25%
  9. Emerson Electric Co. (EMR): 2.92%
  10. Deere & Co (DE): 2.68

VIS (Vanguard Industrials ETF) follows the MSCI US Investable Market Industrials 25/50 Index which covers a similarly wide spectrum of constituents as XLI. The fund was launched in September 2004. The expense ratio is .24%. AUM equal $450 million while average daily trading volume is low at 64K shares. The lighter volume indicates Vanguard's emphasis on buy and hold especially with financial advisors. As of early November 2011 the annual dividend is $.85 making the current yield around 2.16% and a YTD return of over -7.33%.

Data as of November 2011

VIS Top Ten Holdings & Weightings

  1. General Electric Co (GE): 11.56%
  2. United Technologies Corp (UTX): 4.47%
  3. Caterpillar Inc (CAT): 3.93%
  4. 3M Co (MMM): 3.70%
  5. United Parcel Service, Inc. (UPS): 3.09%
  6. The Boeing Co (BA): 2.98%
  7. Union Pacific Corp (UNP): 2.96%
  8. Honeywell International, Inc. (HON): 2.56%
  9. Emerson Electric Co. (EMR): 2.45%
  10. Deere & Co (DE): 2.00%

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs