Industrials ETF 'XLI': Potential Catalyst for Growth and Expansion
Denver, CO
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February 02, 2024 05:00 AM Eastern Standard Time
The industrial sector, traditionally the backbone of any robust economy, is currently experiencing a resurgence. As a nation, we are focusing on revitalizing our infrastructure, which includes railroads, aviation, and heavy machinery. This renewed focus has increased demand for industrial space and sparked job creation in these sectors.
An exchange-traded fund (ETF) such as the Industrials Select Sector SPDR Fund (XLI) provides investors with an efficient, cost-effective* way to gain exposure to this expanding sector. XLI offers access to key sub-sectors of the US economy which may fuel this growth.
The XLI tracks a market cap-weighted index of industrial-sector stocks drawn from the S&P 500. Currently holding over $15 billion in assets under management, it has a low annual expense ratio of 0.10%, making it one of the most efficient and tradable ways to gain access to the industrial sector.
The top 10 holdings** for XLI are:
Caterpillar Inc. (4.28%)
Union Pacific Corp. (4.25%)
Boeing Co. (4.20%)
General Electric Co. (3.94%)
Honeywell International Inc. (3.92%)
Uber Technologies (3.59%)
RTX (3.43%)
United Parcel Service, Inc. Class B (3.22%)
Deere & Co. (3.04%)
Lockheed Martin Corp. (2.84%)
Dominant Market Players
Caterpillar Inc., Union Pacific Corp., Boeing Co., General Electric Co., Honeywell International Inc., and Uber Technologies dominate the sector by market capitalization, representing industries such as aerospace and defense, building products, construction and engineering, electrical equipment, conglomerates, machinery, commercial services and supplies, air freight and logistics, airlines, marine, road, and rail.
Investors ranging from institutional, broker-dealers, financial advisors, and retail are adding diversification to their portfolios with XLI. This actively traded ETF can be an attractive option for investors and traders seeking exposure to the sector.
The foundation of any strong economy lies in the manufacturing and distribution of goods to businesses and consumers. XLI provides investors with exposure to this fundamental process that is essential to the daily operations of commerce, retail, and services.
The Role of XLI in Portfolio Diversification
A key aspect of building a portfolio is understanding the significance of each of the core 11 sectors of the S&P 500. The industrial sector, represented by XLI, can serve as a viable starting point for investors of all sizes seeking diversified investments.
As we move forward, XLI can open doors to manufacturing and transportation, serving as a gateway to the infrastructure revitalization and industrial expansion that is currently driving our economy.
DISCLAIMER: This is a work of research and should not be taken as investment or financial advice. Therefore, Select Sector SPDRs or the publisher is not liable for any decision made based on the publication.
About the Company:
Select Sector SPDR ETFs offer flexibility and customization opportunities. Many investors have similar outlooks, but no two are exactly alike. Select Sector SPDR ETFs let investors select the sectors that best meet their investment goals.
*Ordinary brokerage fees apply
**Holdings, Weightings & Assets as of 12/31/23 subject to change
DISCLOSURES
The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Index figures do not reflect any fees, expenses or taxes. An investor should consider investment objectives, risks, fees and expenses before investing.
One may not invest directly in an index.
Transparent ETFs provide daily disclosure of portfolio holdings and weightings
All ETFs are subject to risk, including loss of principal. Sector ETF products are also subject to sector risk and nondiversification risk, which generally will result in greater price fluctuations than the overall market. Diversification does not eliminate risk.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF (732-8673) or visit www.sectorspdrs.com. Read the prospectus carefully before investing.
ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is distributor for the Select Sector SPDR Trust.
Media Contact:
Company: Select Sector SPDRs
Contact: Dan Dolan*
Address: 1290 Broadway, Suite 1000, Denver, CO 80203
Country: United States
Email: dan.dolan@sectorspdrs.com
Website: https://www.sectorspdrs.com/
*Dan Dolan is a Registered Representative of ALPS Portfolio Solutions Distributor, Inc. ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is the distributor for the Select Sector SPDR Trust.
SEL007228 EXP 3/31/24
Contact Details
Dan Dolan
+1 203-935-8103
Company Website
