As we know, China is in the midst of a building boom that’s been digging up potential for a number of exchange traded funds (ETFs), and industrials are no exception.

Heavy equipment maker Caterpillar (CAT) is expecting record sales this year, as demand in China and other emerging economies offset weakness here at home, reports Joe Mcdonald for the Associated Press.

Demand is so great that anyone in Asia thinking they’d like to get a Caterpillar
would have to wait until 2010, because they’re sold out of most items until then.

Caterpillar has plans to open a research-and-development center and to expand a factory in China as part of $1 billion in planned investments in emerging markets over the next three years.

Sales in China this year are expected to top $2 billion, and global sales are expected to be at least $50 billion.

Caterpillar’s sales have also skyrocketed in India, Russia, Southeast Asia and the Middle East.

ETFs that contain Caterpillar as a component include:

• DIAMONDS Trust, Series 1 (DIA): down 12.1% year-to-date; Caterpillar is 4.6%
• Industrial Select Sector SPDR (XLI): down 10.2% year-to-date; Caterpillar is 3.5%
• iShares Dow Jones US Industrial (IYJ): down 8.9% year-to-date; Caterpillar is 2.5%

Tags: Asia, China, DIA, Dow Jones Industrial Average, Emerging Markets, IYJ, Middle East, Russia, Sector ETFs, XLI