Target the Indusustrials Sector with an Industrial ETF
List of Industrials Exchange Traded Funds
When targeting a certain industry, sector ETFs are a great way to gain instant exposure without having to corner the market in related stocks or battle the price of an index basket. So if you are looking to target the industrials sector in your investing strategy, an industrial ETF may be a great fit for your portfolio.
The industrials sector usually includes companies involved in such industries like (but not limited to) engineering, heavy machines, parts manufacturing, construction, electrical equipment, aerospace and defense and general manufacturing. The companies can even be involved with cross sectors such as technology, utilities and even consumer discretionary.
So if you feel this is an opportunity for your investment strategy, not only will you have specific access to the sector with industrial funds, but you’ll also get the benefit of the many advantages that come with ETF investing – tax advantages, cost advantages, etc.
And more good news, there is a decent amount of industrials ETFs to select including foreign, leveraged and inverse funds. At the moment, there are several industrials ETFs and as more become available, I will update this list. Also, if any are delisted, I will remove them from the list as well. So check back often. In the meantime, here is your current list of industrial ETFs.
AXID - iShares MSCI ACWI ex US Industrials Sector Index ETF (NOW CLOSED)
This foreign ETF tracks the MSCI All Country World ex USA Industrials Index and holds industrials-related companies such as Siemens, Canadian National Railway, and Mitsubishi Corporation. It has about 234 holdings in all and has been trading since July of 2010. The sector breakdown in the fund is mostly capital goods, followed by transportation and commercial and professional services.
CHII - Global X China Industrials ETF
This China ETF correlates with the Solactive China Industrials Index and some of its holdings include China Zhongwang LTD, China Communications, and Anhui Conch Cement Company LTD. The find has been trading since November of 2009 and targets companies that are located in China or conduct the majority of their business in the country.
FNIO - iShares FTSE NAREIT Industrial/Office Cap Index ETF
This fund tracks the FTSE NAREIT Industrial/Office Capped Index and has companies such as Boston Properties, Prologis, and Liberty Property Trust. It has about 31 holdings and has been active since May of 2007. And as indicated by the name, the sector breakdown falls mostly into equity office and equity industrial.
IGEM - EGShares Industrials GEMS ETF
This foreign ETF correlates with the Dow Jones Emerging Markets Industrials Titans 30 Index. Some of its holdings include Larsen and Toubro LTD, Tata Motors LTD, and Bidvest Group LTD. There are multiple countries represented in this fund including India, Indonesia, China, South Africa, Mexico, Hong Kong, Malaysia, Brazil, Egypt, and Thailand. Construction and Materials is the most heavily-weighted sector represented in the ETF, but Industrial Engineering and General Industrials have some weight as well.
IPN - SPDR S&P International Industrial Sector ETF
This SPDR exchange traded fund targets the industrial sector of developed global markets outside the United States by using the S&P Developed Ex-US BMI Industrial Sector Index (SPBMU2UP) as its underlying benchmark. Some of the top holdings in the index and fund are Siemans, Canadian National Realty, and Abb LTD. The top industries represented are Machinery, Industrial Conglomerates, Trading Companies and Distributors, and Rail and Road. The top countries represented in the fund are Japan, Germany, and the United Kingdom.
IYJ - iShares Dow Jones US Industrial ETF
This ETF correlates with the Dow Jones U.S. Industrials Index and holds industry-related companies like General Electric, United Technologies Corporation, and 3M. There are roughly 242 stocks in the fund and it was launched way back in June of 2000. As for the sector breakdown, it’s pretty diverse covering general industrials, industrial engineering, aerospace, support services, transportation and electrical equipment.
PRN - PowerShares Dynamic Industrials ETF
This industrials fund tracks the Dynamic Industrials Sector Intellidex Index and holds companies such as Delta Airlines, United Continental Holdings, and Tyco International. Obviously, industrials is the major sector in the fund, but it does cross over a bit into the utilities sector as well.
PSCI - PowerShares S&P SmallCap Industrials Portfolio
This small-cap ETF follows the S&P Small Cap 600 Capped Industrials Index and focuses on US companies such as Toro Company, Teledyne Technologies, Robbins and Meyers Inc, and Old Dominion Freight Line. Other than industrials being the major sector represented, the fund does spill over slightly into the Financials and Consumer Discretionary sector.
RGI - Rydex S&P Equal Weight Industrials ETF (NOW CLOSED)
This fund tracks the S&P 500 Equal Weight Industrials Index and has companies such as Cooper Industries (CBE), Ingersoll Rand (IR), and Equifax (EFX) in its holdings. The largest sector represented in the fund is machinery, but other sectors such as aerospace and defense, commercial services and supplies, and electrical equipment are represented as well.
SIJ - UltraShort Industrials ProShares ETF
This is a leveraged and short ETF that inversely targets twice the daily return of the Dow Jones US Industrials Index. The fund uses derivatives such as swaps as well as some other assets like cash to achieve its investing goals.
UXI - Ultra Industrials ProShares ETF
Like SIJ above, this fund also seeks twice the daily return of the Dow Jones US Industrials Index, however, unlike SIJ, it is not an inverse fund. Some of the holdings I this fund include General Electric (GE), United Technologies Corporation, 3M Company, and United Parcel Service Inc.
New Industrial ETFs
- FIDU - Fidelity MSCI Industrials Index ETF
- ARKQ - ARK Industrial Innovation ETF
- JHMI - John Hancock Multifactor Industrials ETF
It’s important to understand that no investment is without risk and that includes the above exchange traded funds. So make sure you research each ETF individually and thoroughly. Understand how they work, what is in each fund, and how they may react to different market conditions. If you have any questions, be sure to consult your broker or a trusted financial professional. However, once you’ve conducted your due diligence and made the proper selections for your portfolio, I wish you nothing but good luck and industrial ETF profits.